My daughter is considering buying a flat which has 74 years lease remaining. What risk is there if I extend after 2 years?

by The Chartered Surveyor

Question

My daughter is considering buying a flat which has 74 years lease remaining. The flat price is 200k and already there is some interest in this property. Is there a risk in buying this property? If we do buy and after 2 years extend the lease, would the flat price increase to reflect this extended lease (assuming no increase in flat price).

Answer

Your question ‘is there a risk in buying this property’ is very wide reaching. It is certainly true that you will pay noticeably more if you extend in 2 years time as opposed to now. The most typical procedure is to have the current owner serve a notice of claim before you complete on the property which fixes the valuation date to that of the notice. It is of course not possible to predict property price rises but you could be looking at around a £1,000 increase for every year that you leave it.