Is an 85 Year Lease ‘Short’

by The Chartered Surveyor

Question

I am considering buying a flat with a lease of 85 years for £162,000 asking price. Would this lease be classed as ‘short’? Also, can you give an estimate as to the possible cost of extending the lease so I can give some thought as to whether it’s worth the hassle.

Answer

It is at the 80 year mark that ‘marriage value’ becomes payable and makes the cost of extending the lease considerably more expensive.  That said, buyers in the market are recognising any lease under 100 years as being on the short side.  

You can obtain a rough estimate of the cost of extending your lease by inputting the key details in to one of the many online calculators. 

In order to extend your lease formally under the Leasehold Reform, Housing and Urban Development Act 1993, you have to have owned your property for a minimum of 2 years although this can be bypassed when purchasing by having the current owner assign the benefit of extension to you. That’s something to discuss with your legal adviser.