To buy a leasehold before sale?

[RunForTheCakeShop]

We're about to sell our flat and move abroad but our estate agent has suggested we purchase an extension on our lease in order to make the property more appealing.
My wife does not want to go down this route as we've saved long and hard for our relocation and we've been advised it could potentially cost us an extra £10k.
So my question is ....
Does purchasing a property with a 78 year lease instead of a 99 one look so unappealing to you?
(I am originally from South Africa so the property laws here are beyond my knowledge)

I wouldn't buy one with a 78 year lease but would with a 99 year lease

Yep it's too short

People won't be able to get a mortgage on a 78 year lease property but can for a 99 yesr lease one. If you have been there more than 2 years you can extend and a new purchaser cannot unless the freeholder agrees.

The estate agent presumably has down valued your property with such a short lease. You should be able to recoup the cost of extension as the value would go up and also the number of people able to buy it would go up.

No one in their right mind would pay for a lease of 78 years. If you have owned for more than 2 years go for a statutory lease extension that will add 70 years to your lease and reduce your ground rent to zero.

You will get the money back when you sell. It will be pricey though depending on the flats value. You have marriage value to add to the price as it is below 80 years.

They haven't devalued the property at all actually. It is currently on the market for the same as an adjacent flat but they've advised us to be prepared for purchasers to negotiate the price.

💯extend the lease before selling

Assuming you even get one

I hope it says on the estate agent particulars that it only has a 78 year lease. Please don't let people go to the expense of surveys and mortgage brokers and solicitors before they find out via the solicitors.

@Spirallingdownwards
Yes, the listing is very clear on the leasehold. The whole process of buying and selling in this country is horrendous isn't it.. I bought my last house in less than 3 weeks and I feel like I've spent the exact amount of time just having some bloody photos taken!!

Yes conveyancing here is a nightmare but you really should extend the lease as I don't think you will even find a buyer to even start the process. After it goes below 80 years each year you leave it it gets more expensive to extend. A previous poster referred you to marriage value. Ask your solicitor to explain this to you or at least Google so you understand the impact.

Does the neighbouring flat have an extended lease? In a lot of buildings all of the flats have the same lease length unless someone has extended so the pricing might be like for like.

But no one will buy your shorter lease while the other one is still for sale. You should be willing to knock the price of an extension off your sales price.

EDIT: An extension would take you to +90 years, so 168 years which is materially different to 78 years.

Get an extension of 99 years to make it 70+99
Anything under 82 is tricky
It might be more than10k depending on flat value

That will fall under an informal lease extension then and you will be beholden to what the freeholder negotiates. Always better to go for a statutory lease extension if possible, this is set in stone what has to happen and a timeline.

Yay!!! 14 viewings and 5 offers... no lease extension. Quite shocked.

Are they cash buyers? As they won't get a mortgage on that length of lease. Don't want to burst your bubble but if they are not aware of the leasehold rules they may pull out as soon as they put in for their full mortgage.