You’ve been searching for the property of your dreams for some time and suddenly, you think you’ve found it – but there’s a hitch: it has a short lease. Should you buy it? It’s a dilemma that online conveyancing solicitors have to deal with regularly but with the right conveyancing solicitors on your side, there is hope.
A good conveyancing solicitor will be able to advise on options open to you when it comes to potentially buying a property with a short lease.
A property with a lease that has less than 85 years left should definitely be a cause for concern. The reason why this can be such a problem is because leases that have 70 years or less remaining are nearly impossible to mortgage. This is because properties that get to less than 80 years left on their lease are affected by ‘marriage value’. This happens when a lease that has less than 80 years to run is extended. Due to a lease extension adding value, the landlord is entitled to half of this increased value. This certainly poses a problem for lenders, mortgage solicitors, the seller and the buyer.
Don’t despair however, there is still hope for buying that dream property. By securing the services of good conveyancing solicitors online, you can be left with options that still make it possible for you to buy that dream home.
Firstly, good online conveyancing solicitors can ask a seller to extend the property’s lease before it is sold to you. This saves you from having to deal with any future lease risks and the costs associated with extending the lease. However, there are a couple of drawbacks; the process of extending a lease can be a time-consuming one and would lead to a delay in your ability to purchase the property. The other drawback is that the seller may increase the asking price of the property to cover off the costs associated with extending the lease.
On the other hand, you could purchase the property with the lease as it is but negotiate the sale at a lower price. This would leave you having to legally wait two years to make a lease extension though.
You could also serve the require notice on the freeholder and ask the seller to make the extension application in advance. You will then receive the benefit of the lease extension when purchasing the property and the extension would then be concluded following completion of the sale. However, none of this should be attempted without securing proper online conveyancing services.
Always look for good online conveyancing solicitors who will keep you in the loop over these processes and who have the skill to negotiate the above deals. Make sure to compare conveyancing quotes to ensure you get the best deal. With the buying process for short lease properties proving timely and costly, you’re going to want to conveyancing services to be as affordable as possible.