Below 80 years, extending gets markedly more expensive, because you become liable for marriage value. Below about 70 years, most mainstream lenders will not lend at all — which removes most of your buyers at a stroke.
Buyers who want the flat cannot get a mortgage on it, and cash buyers who can are thin on the ground. That is why it sits.
The premium covers the freeholder's lost ground rent, the value of getting the flat back later, and — under 80 years — marriage value: the uplift the extension creates, of which the freeholder takes half.
On top you pay both sides' professional costs. Budget around £5,000 for both sides, and expect several months if the freeholder is slow or the premium is disputed.
Every year that passes makes it dearer. This is not a problem that waits well.
Extend first if you can fund the premium and the fees, you can wait, and the lease is close to 80 years — getting above that line before marriage value applies is usually worth doing.
Sell as it stands if you cannot fund it, you need the sale done, the freeholder is uncooperative, or the lease is short enough that the premium would swallow most of the uplift.
There is a middle route: if you have owned the flat two years you can serve notice and assign the benefit of it to your buyer, so they complete the extension. That widens your buyer pool without you funding the premium.
We buy them. We work out what the extension would cost, factor it into the offer, and tell you what we have assumed — so you can see whether extending yourself would leave you better off. Sometimes it would, and we will say so.
See also: selling your flat fast.
What a statutory 90-year extension is likely to cost, using the same method our own valuations use. It is an estimate, not a valuation — a real premium is settled between surveyors.
Assumes a statutory 90-year extension at a peppercorn rent, a 5% deferment rate and a 6% capitalisation rate, and includes roughly £5,000 of legal and valuation costs for both sides. Stamp duty may be payable on a large premium. Take advice from a solicitor and a valuer before serving notice.
A few details online or over the phone — where it is, roughly what you think it is worth, and anything we should know. No forms to sign and nothing to pay.
From sold comparable evidence, not asking prices. Then, at our expense, an independent agent or surveyor validates that valuation. You are not charged for either, whether or not you go ahead.
We view every property in person before we commit. It is also your chance to meet us and ask whatever you want — we would rather you sold your house to someone you have actually met.
Typically 15–20% below market value, with £1,500 towards your legal fees and no fees of any kind deducted. We never offer money up front, and we would be wary of anyone who does.
Yours or one we recommend — the £1,500 applies either way. This is the stage where sales slow down, which is why we suggest firms used to working at this pace.
Exchanging locks the sale in at the agreed price. Completion is on your timetable — the same day if you need the money now, or months later if you need time to find somewhere, fit around a school term, or wait on a probate grant.
Below 80 years is the point that matters financially, because marriage value starts to apply. Below about 70 years is the point that matters practically, because most mainstream lenders stop lending — which removes most of your buyers.
The increase in the flat's value created by extending the lease. Under 80 years the freeholder is entitled to half of it, on top of the rest of the premium. It is why crossing below 80 years costs so much.
If you can fund the premium and the fees, can wait several months, and the lease is close to 80 years — usually yes. If you cannot fund it, need the sale done, or the lease is short enough that the premium would swallow the uplift, usually no.
Yes, if you have owned the flat for two years. You serve notice and assign the benefit of it to your buyer, who completes the extension. It widens your buyer pool without you funding the premium.
We calculate what the extension would cost, including marriage value where it applies, and factor that in — then tell you the figure we used. If extending yourself would leave you better off, we will say so.
Generally yes. The shorter it is, the more the extension costs and the more that shows in the offer, but a short lease does not put us off the way it puts off a mortgage buyer.
Whenever suits you. Once we exchange, the completion date is yours to choose: the same day if you need the money immediately, or months later if you need time to find somewhere or to fit around a school term or a probate grant. Exchanging locks the sale in at the agreed price; completing is on your timetable, not ours.
You can use your own solicitor or one we recommend — it makes no difference to us, and either way we put £1,500 towards your legal fees. We do suggest ours, for one practical reason: the most common cause of a slow sale is a slow solicitor, and the firms we work with are used to moving at this pace.
We are not members of a trade body and we do not claim to be. What we have is a 35-year record in property across several companies, and many millions of pounds of property bought. We are 5JE London Limited, company number 15891621 — you can look us up at Companies House before you speak to us.
Three things you can check with any buyer, including us: do they publish what they actually pay? Will they come and meet you in person? Do they ever ask you for money up front? Our answers are 15–20% below market value, yes, and never.
Want a cash offer on your short-lease flat?
Tell us about it and we will come back to you with a cash offer. No obligation, and nobody will pressure you.