Case Studies: Real-World Solutions for Short Lease Properties

Many of our sellers come to us after being stuck on the market with another estate agent, not selling. It might be that they've not received any offers, or just not been offered a price that makes it worthwhile to sell. Their current agent's suggestion: Reduce the price...

That's how these 2 clients came to us in the case studies below, desperate for a better option than their current agent was offering.

Saving a Client from Repossession - The Power of a Lease Extension

Mrs. W found herself in a dire situation, facing three critical challenges:

1. Court Date Set: The bank was scheduled to repossess her flat.
2. Short Lease, High Cost: Her flat had a mere 33 years left on the lease, and she couldn't afford the £97,000+ it would cost to extend it.
3. Stagnant Sale: After five months on the market with her current agent, advertised to cash buyers only, the best offer she'd received was a meager £150,000.

We sat down with Mrs. W to explore every option. It became clear that selling with an extended lease was her only path to walking away with any equity above her bank debt. Our solution sounds simple, but requires a lot of coordination: Advertise the flat with a long lease to attract a mortgage buyer at a significantly higher price.

We listed the flat at £275,000. Within the very first weekend of marketing, we held an open house viewing day and received multiple offers, ultimately securing a sale at the full asking price. This was a staggering £125,000 more than her previous best offer! After the lease extension this translated to a substantial £25,000+ directly into her pocket.

Navigating this complex situation required meticulous coordination. We worked closely with everyone involved; the buyer, their solicitor and mortgage broker, Mrs. W, her solicitor, her managing agent, the freeholder, their lender, and even the lender's solicitor managing the repossession. Our goal was clear: to prevent repossession and ensure a smooth completion, all while successfully extending the lease simultaneously with the sale.

We successfully delivered on both counts and Mrs W was delighted with the result.

Selling a Flat with a 59-Year Lease to a Mortgage Buyer

Mr. K was stuck. After seven months on the market with his previous agent, his flat with a 59-year lease wasn't selling. Despite multiple price reductions aimed at attracting cash buyers, a sale remained elusive. The other agent's only suggestion? Another price drop.

We proposed the opposite: let's increase the price and advertise to mortgage buyers by offering the flat with a long lease. Mr. K didn't have the funds for the lease extension, so we laid out a plan where he wouldn't need to pay for it upfront. He was thrilled to be given a better option, understanding this approach would open his property to the entire market, not just a small pool of cash buyers.

We advertised the flat for £75,000 more than the previous agent's price. The results were immediate: we found a buyer in the very first weekend of viewings.

Going from seven months with no sale to accepting an offer within a week, Mr. K was absolutely delighted.

Is Short Lease Property Sales the Right Path for You?

Do any of these challenges sound familiar?

• Struggling to sell your property?
• Your property is sitting on the market for an extended period?
• You've had to repeatedly reduce the asking price?
• You're stuck advertising to 'cash buyers only'?
• Sales falling through?
• You're losing buyers with them withdrawing offers?
• Your buyers are being turned down for mortgages?

If so, as experts in selling flats with short leases, we can help! Give us a call today to find out how: 02030 266 288