If you're dealing with short lease flats, brace yourselves for some eye-watering numbers. House Buyer Bureau's recent analysis reveals that sellers of short lease flats in England face a staggering average price drop of nearly £50,000 compared to flats with longer leases.
Why the dramatic dip? Well, many mortgage lenders have strict minimum lease requirements, shrinking the pool of potential buyers. Those who remain are savvy enough to factor in the future cost of extending the lease when making offers.
Currently, the average short lease flat in England is listed at £170,201, a significant 22.1% below the average flat price of £218,451. Yorkshire and the Humber lead the pack with the largest price gap, where short lease flats are priced 35.2% lower than the regional average.
On the flip side, London shows the smallest discount at 11%, thanks to its robust demand for flats. However, even in the capital, short leases can be a tough sell.
For sellers, the choice is tricky: fork out thousands to extend the lease or accept a substantial discount. Extending a lease can cost over £12,500 for those nearing 100 years, and more than £33,000 for leases under 60 years.
As House Buyer Bureau puts it, a short lease doesn’t just affect value—it can determine if you can sell at all. The longer you wait, the pricier it gets to extend, while buyers become scarcer. So, if you're in the short lease game, it might be time to strategise your next move!
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