Selling a Property with a Short Lease
A short lease can make selling your property extremely challenging. As leases drop below 80 years, the cost of extending increases significantly due to the marriage value calculation. Below 70 years, most mortgage lenders will not lend. Understanding your options is crucial.
Published by Lucennio Property Limited. General information, not individual professional advice.
Discuss my propertyThe 80-year threshold
When a lease drops below 80 years, the cost of extending it increases because the freeholder can claim a share of the marriage value. This is the increase in the property's value created by extending the lease. Acting before this threshold saves money.
Selling to a cash investor
A buyer may consider a short lease, subject to funding and legal advice about extension rights, costs and other terms. Cash funding does not remove lease risks or guarantee a purchase. Compare an actual proposal with professional advice on other options.
Frequently asked questions
We are a property sourcing and introductions service. We connect sellers with property investors. Offers may be below open market value. Timescales depend on the legal process and property specifics.