Does a decreasing Leasehold affect property value?

divalou

Hi there;
My boyfriend and I havfe just got back from viewing a flat which we both love. The leashold is at 99 years at the moment so it has literally just started, but the worry I have is -
will the decrease affect its value?

Its on the market at £145000 at the moment and, even though we probably wont be there for more than 5 years, I want to know if the value will drop?

Also, would it be beneficial from the start to extend the lease to 999 years? Would that help to maintain the property value?
(is this expensivve?)

Doozergirl

If you plan to stay for five years, the length isn't a consideration.

To answer your title, yes it does decrease but not between 99 and 95 years. It would be prudent to renew the lease a little before it gets to 80 years but even then it may not affect the value by very much.

I wouldn't worry yourself