Q: SHOULD YOU BUY A SHORT LEASE LUXURY LONDON HOME?
(London currently has a disproportionate number of flats and Mews Houses available with 20years or less on the lease)
A: NO. Leave them to the speculators.
- Less choice. There are short lease properties in many Prime locations from Belgravia to Marylebone. When you are buying a ‘Luxury Home’ you should not be compromising on location, property style or accommodation size. Short lease properties offer far less choice.
- Lease extension costs are volatile. Currently Agents are telling buyers that the depressed market leads to lower valuations. Yet by the time the process is underway (it takes months) clarity on Brexit may raise prices and the cost of your lease could be in excess of the guided range.
- Large freeholders are increasingly challenging valuations at tribunals or even in the High Court. Cadogan Estates took a group of freeholders through several leasehold valuation tribunals and succeeded in changing a key valuation metric. Pushing prices up for anyone extending a lease. If you get caught as a ‘test case’ your substantial legal fees aren’t recoverable, even if you win!
- CONCLUSION: Go for 80+ year leases or share of freehold apartments and mews houses and have your advisors negotiate hard! 😉 MrSuperAdvisor • €$¥£ •