Property: How length of lease can impact value of your home

Just how important is leasehold length? Well, when it comes to the selling of your flat or apartment, it can make a significant difference, writes COLIN LESLIE, head of residential sales at Bettesworth Estate Agents.

Nearly all flats available on the open market today are what they term as being leasehold, which can vary in length from 99 years to the more common term available today of 999 years.

This longer lease effectively makes it as good as a freehold and gives both peace of mind to the owner and in the case of a lender, a bank or building society, confidence for securing a mortgage.

Can the length of lease impact the value of a property? Absolutely!

Earlier this year I was asked to give marketing advice on a lovely, two-bedroom, purpose-built apartment which had a previous sale but had fallen through due to the fact that only 60 years remained on the original lease of 99 years.

Furthermore, the previous agent could only attract cash buyers as most lenders are reluctant to consider any type of property with less than 80 years remaining on the lease.

I immediately asked as to whether they had been advised on the possibility of extending the lease, knowing that Bettesworths' in-house chartered surveyors are fully qualified to provide the necessary advice and costs involved.

It turns out no such advice had been given and, after a successful consultation provided by Paul Bettesworth RICS which resulted in a brand new 999-year lease being drawn up, we were delighted to both secure a sale to a purchaser who required a mortgage and were able to achieve an extra £24,000 over the original agreed sale price - much to the delight of the homeowner.

This goes to show that having the correct professional advice when appraising a property can make a world of difference to both values or indeed attracting a much wider range of potential buyers.

If you are considering selling your home in 2023, give Bettesworths a call on 01803 212021 to arrange a free and confidential marketing appraisal.