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What does 'Lease Length' mean?

Lease Length

If you are buying a leasehold property you are essentially buying the right to live in that property for a certain number of years after which it must be returned to the freeholder. The number of years left on the lease before it must be returned are known as the lease length or the length of the lease.

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How to Really Buy a Property

"... Free and Vacant Possession; Why you can't get a mortgage on some properties; The characteristics of a leasehold property; What lease lengths affect a properties value; How lease lengths can be extended; Why Share of Freehold is not always attractive; The agent's obligations if you make an..."
"... get a mortgage on some properties; The characteristics of a leasehold property; What lease lengths affect a properties value; How lease lengths can be extended; Why Share of Freehold is not always attractive; The agent's obligations if you make an offer. - How the System Works -..."
"... length and Value: There is usually a great deal of confusion amongst buyers as to what is a "good" lease length. One hundred years or more is often quoted but while this is quite easy to find in say, Islington, it is rare in some other areas such as Clapham. The affect the lease length has on a property value is based simply on the number of people who believe they can afford it at any given time at how they perceive it will affect their ability to resell..."
"... the lease 50 to 60 years: It is still possible to raise a mortgage on such lease lengths although the perception of buyers is very different. A higher degree of concern over resale value or the costs of a lease extension will now start to have a substantial affect on the value Less than 50..."
"... the Lease: You may not be particularly happy about giving the property back to the freeholder after seventy years. The good news is that whether he wants it or not, if you have used the property as your main residency for the last year, you can force an extension on the lease. There will be a fee and this is usually calculated at what the property is worth now compared to how much it will be worth after the extension is granted. As such a twenty year extension on a property with a one hundred year lease is considerably cheaper than it would be on a property with a fifty year lease. As an example increasing a lease length from one hundred years to one hundred and twenty years may increase the value of the property by £2,000. In other words an amount too small to be recognisable . A reasonable fee for the freeholder to charge you would be £2,000 plus legal and administrative costs. For a fifty year lease the extension may increase the value of the property by £50,000. and so that would be the fee (again plus legal and administrative costs). If your freeholder wants an unreasonably large some it is possible to demand arbitration. A "reasonable" amount will be decided and both parties must abide by..."
"... Length and Value: Despite being share of freehold the flats in the above example are still leaseholders. The difference is that they are leaseholders to a freehold company and each one of them owns a share of that company. This means that if the leases are starting to look short on years they can simply agree amongst themselves to grant each other a fifty year extension for say £1 each! As such lease length and value have little connection in a Share of Freehold..."

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Author of How to Really Buy a Property

I'm Tim Hill, Author of How to Really Buy a Property. I'm a property buyer, seller, landlord, tenant and I've been an agent in hundreds of transactions. I own a property portfolio across Europe but that doesn't mean I think you should to!

This book is my collective knowledge and experience that I have gained working within the property market of England and Wales for over a decade. I've written it so that you can benefit from what I have learnt whether you are a first time buyer or a budding buy-to-let investor.

There are no gimmicks here and no get rich quick schemes - just practical no nonsense advice so you can buy the property you want at the best price with the least stress.

Download the Free Preview copy right now. I won't be asking for your email so I can bombard your inbox with 'special offers' and 'discounts' because I know most people who read the Free Preview buy the full copy. See for yourself!