Selling A Short Lease Flat in Mayfair

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If you’re the leasehold owner of a flat in London’s popular and expensive Mayfair neighbourhood, you might find that your lease agreement is considered very short because it expires years ahead of a regular lease. This can make it harder to attract buyers when you’re trying to sell this type of flat, but you still have options for how to resolve this situation.

1. The history of short lease flats in Mayfair
2. Areas of Mayfair with hotspots of short lease flats
3. Challenges with selling a Mayfair flat with a short lease
4. How to resolve having a short lease flat in Mayfair
5. Your options to find a buyer for a short lease Mayfair flat
6. Top questions about selling a short lease flat in Mayfair

A brief history of short lease flats in Mayfair

Known as one of the most expensive neighbourhoods in the world, Mayfair is a small part of London that is always highly sought after as a place to own a property.

Although it was mostly a rural area for many centuries, it started to be developed in the 1700s and since then has grown into an area with a mix of high-value residential and commercial properties, including leasehold flats. This also explains why it’s one of the most expensive squares in the game Monopoly, as this references the top prices for homes in this area/

Mayfair is known for having many short lease flats, which refers to a property that has less than 70 years left on its leasehold agreement. Such agreements are signed by the leasehold owner of a flat and the freehold owner, who is the outright legal owner of the property. The agreement gives a leasehold owner a set number of years to live in the flat, and they pay the freeholder a set amount each year, known as a ground rent. Many leases elsewhere run for 99 years or up to 125, but a large number of Mayfair leases are much shorter, some only 20 years.

This unique situation is due to how flats came to be developed in the area, particularly with the Grosvenor family and six other estates that owned hundreds of acres of land, including a significant portion of present-day Mayfair. They built properties around a park, now known as Grosvenor Square, as the central feature. The Grosvenor Estate homes are the only ones that remain as they originally were constructed, and are still owned by the Grosvenor family.

The property ownership in this location meant the estates got to set the terms of the leases, imposing short leases of less than 80 years for particularly high-demand flats or those with few options for expansion. And certain estates made the decision to set very short leases, for example just 20 years, for some flats, making it easier for owners to redevelop them in the future to meet demand, rather than having to wait out a leaseholder under a longer lease.

As the HomeOwners Alliance says in a recent article, the UK government is looking at overhauling property laws and rules, including for leasehold flats. But the full extent of such changes remains to be seen, and the outlook for Mayfair short lease flats remains unclear.

Areas of Mayfair with hotspots of short lease flats

Compared to many other parts of London, Mayfair is a relatively small neighbourhood that covers just one square mile. But even within this area there are particular locations that have a larger number of short lease flats, known as “hotspots” for such flats.

If you live in one of these zones, you might find that this could add to your challenges in selling your property – although contacting LDN Properties is one way to overcome such difficulties and instead enjoy a fast and no-fee sale of your flat. These areas include:

• Brook Street and Upper Brook Street – Most of the properties in this area are leasehold, and include lease extensions tied to the Grosvenor Estate.
• Curzon Street (near Hertford Street and Shepherd Market) – You’ll find many short lease houses and flats situated in this location.
• Hill Street – There are several flats situated on or near this street that have short leases, although you can find some longer-term lease flats here too.
• Mount Street – This is considered to be one of the most in-demand parts of Mayfair for homes, with complex leases for a range of commercial and residential properties.
• North Audley Street (near Berkeley Square and Grosvenor Square) – Another location that has more short lease flats compared to other parts of Mayfair.

In addition to the specific hotspots outlined above, you will find that there are often a greater number of short lease flats located in parts of Mayfair near to private squares and gardens, for example on Green Street, Park Street and Woods Mews, among other areas.

Challenges with selling a Mayfair flat with a short lease

Mayfair flats that have a short lease can be seen as a “problem” property by some potential buyers, because short leases are generally less in demand than long lease flats. That’s because they reduce the number of years that are buyer would be guaranteed as the leasehold owner of the property, and it might be expensive and time-consuming to secure a lease extension from the flat’s freehold owner.

Given these factors, some mortgage providers might be hesitant to approve a buyer for a loan to buy a short lease flat, especially if it’s one that has 20 years or less left on the agreement. Many lenders will want to see a lease duration at least 25 years longer than the mortgage. A key reason why mortgage providers will be wary is that they could believe it will be hard for them to resell the flat if they need to repossess it, should the buyer default on their mortgage. If buyers are unable to get the funding they need to purchase your flat, they can’t buy it.

Other buyers who have the funds available for purchasing the flat might still be reluctant to make an offer because of the short duration of the lease. They could be looking for a much longer lease that provides legal certainty over many more years, and they might be unwilling to pursue what could be a lot of hassle and cost with trying to win a lease extension later.

But as you’ll see in the following sections of this guide, there are a few different options for how to resolve your situation if you are the owner of a short lease flat in Mayfair.

How to resolve having a short lease flat in Mayfair

If you’re the owner of a Mayfair flat that has a short lease, you have a few different options available for how to proceed in this situation. Choosing the right option will depend on your unique circumstances, for example your financial situation, whether you’re looking to sell and more. Here you can find a quick summary of what to expect with each approach.

Ask the freeholder for a lease extension

One solution is to get in touch with the freehold owner of the flat, whether that’s the Grosvenor Estate or anyone else – and ask about extending the lease’s duration. Should the freeholder agree to this approach, it would then add several more years to the lease. And depending on how many years get added it, it may even mean the lease is no longer considered short. This in turn could make the property more appealing to buyers looking for long term lease flats.

But given the unique history and nature of short lease flats in Mayfair, you could discover that your landlord is only willing to grant a similarly short extension to your lease. This would mean that in a few years’ time you’d likely be having to ask for another short extension. For some owners, this can be more hassle than they might otherwise be willing to accept.

Try to purchase the property’s freeholder

Leaseholders often have more limited options and flexibility when selling a Mayfair flat compared to the freehold owner of the property. That’s why another potential option to try is contacting the freeholder and seeing if they are open to selling the freehold to you.

Purchasing the freehold would eliminate the lease issue and make you the outright towner of the flat. But there are however a number of possible obstacles involved with trying to buy the freehold. As London Law notes in a recent article, properties in Mayfair are in very high demand and the current owner might set a significant price for the freehold that could be far beyond what you are able to afford.

Sell your short lease flat in Mayfair

If you’re trying to decide how to proceed with your short lease flat in Mayfair, a third strategy is seeking a buyer for it, although this also involves it own hurdles to overcome.

One solution for this approach would be getting in touch with a quick home buying company such as LDN Properties. These businesses have plenty of experience with making quick and fair offers to buy all types of properties, including Mayfair flats that have short leases. The following section of this guide provides information on the four typical options you have for selling a short lease flat in Mayfair, along with the pros and cons of each approach.

Your options to find a buyer for a short lease Mayfair flat

For those owners a Mayfair short lease flat that decide to sell it, you will typically be able to choose from four methods to find a buyer. You could get in touch with a quick buyer like LDN properties, sell via an estate agent, try your luck at an auction, or sell without any help.

Before making a final choice, it’s important to read the advantages and disadvantages of the methods below, including their typical timeline, whether they charge fees, and more.

Selling to a quick home buyer

Quick home buyers are companies like LDN Properties, launched more than 20 years ago, that make competitive and speedy offers to buy many categories of leasehold and freehold homes. They usually only need a few short weeks to complete the purchase of a property, which is ideal for those owners whose aims include finding a buyer for their flat as fast as they can.

Another advantage of selling to a quick buyer is that the legitimate companies do not charge sellers any commission. This means that you could count on receiving the full sale proceeds whilst also limiting your expenses, compared to other selling methods that charge fees.

And quick buyers also have plenty of experience with buying “problem” properties, including Mayfair flats that have very short leases. As a result, a quick buyer will not lose interest in making a fair and fast offer for your flat simply because it doesn’t have a long lease.

Selling via an estate agent

Estate agents will handle most of the work involved with finding a buyer for your home, including preparing a listing, advertising it, organising viewings and overseeing the completion of a sale. That can be beneficial if you do not want to put much work into selling your property.

But selling this way can take a very long time, and you should be prepared for waiting many weeks or months before you find a buyer. And even if a buyer makes an offer to purchase your flat, they could still cancel it before contracts are exchanged. If this happens, you would then need to start over with searching for a buyer, delaying a sale even further.

You will also need to pay commission if an estate agent manages to sell your flat, and this fee would be subtracted from the eventual sale proceeds.

Selling at a property auction

Property auctions can be unpredictable and there’s no guarantee that your flat will sell, in which case you would then need to begin again with seeking a buyer. Even if you do get bids on the property, it might still end up selling at a price that’s lower than you would have preferred.

If your flat did sell at an auction, you would then be required to pay the auctioneer commission for their work in finding a buyer. This includes preparing and marketing a listing and hosting the auction, as well as overseeing the completion of a successful sale. This fee would cause your overall selling costs to rise because it would be taken out of the auction proceeds.

Selling at an auction is also far from the quickest method to find a buyer for your flat, and it can take several months at least from the date that you first decide to use this approach. If one of your top selling priorities is finding a buyer fast, you may want to review other strategies.

Selling without any assistance

Attempting to sell your Mayfair short lease flat without any third-party help can be the most stressful of your choices. That’s because you will be responsible for every step of the process, from putting together and advertising a listing through to hosting viewings and completing the last steps of a sale, and you might not have the time or desire for all of this work.

It might also take a long time – potentially several months or even more than a year in certain cases – to find a buyer. And, as with selling via an estate agent, a buyer could later withdraw a legitimate offer, causing the sale to collapse. You would then need to start over with trying to find a new buyer, possibly adding much more time to your overall selling schedule.

The only clear advantage of selling your flat on your own is that you would not need to pay an auctioneer or an estate agent any commission for finding a buyer, which helps with reducing your expenses. But you can achieve the same zero-commission sale of a flat, and on a much more rapid timeline, by getting in touch with a no-fee quick buyer like LDN Properties.

✅ Why does Mayfair have such a large number of short lease flats?

This stems from the fact that much of Mayfair is property that was originally owned by large estates, including the Grosvenor Estate that still owns many flats and houses here. When these estates built properties, they set certain restrictive rules on the lease agreements, including some very short leases for some flats, some running no longer than 20 years in total.

✅ Why are short lease flats in Mayfair sometimes harder to sell?

Although properties in Mayfair remain in very high demand because of the neighbourhood’s exclusivity, short term leases nevertheless are a cause for concern with many buyers. They do not like the fact that the short lease means less certainty about owning the flat for many years, and it might be too expensive or complicated for them to be able to get a lease extension.

✅ Why might a buyer struggle to get a mortgage for a short lease Mayfair flat?

Because the lender might be worried that they will find it hard to get a buyer for the property in the future, if they end up having to repossess the flat in the event that the buyer defaults on their mortgage payments. In that situation, a lender would then move to resell the flat to try and recoup the outstanding balance that they buyer has left on the mortgage agreement.

✅ What should I do if I own a flat in Mayfair that has a short lease?

You have a few choices for how to proceed but picking the right one will depend on your personal needs. One option is to apply for a lease extension from the freeholder, although this may include high costs. Another option is to seek to buy the flat freehold but this can be very expensive. And a third choice is to try finding a buyer for your short lease flat.

✅ What are my options if I decide to sell my short lease Mayfair flat?

There are four typical methods for selling almost any property, including short lease flats in Mayfair. You could contact a quick home buyer with experience purchasing such homes, like LDN Properties, you could attempt to sell your flat through a property auction, you could enlist the help of an estate agent, or you could try to sell your home without any assistance.

✅ Which method for selling a Mayfair flat with a short lease is fastest?

You will find that selling a flat to a quick buyer like LDN Properties will typically be the speediest selection because it should only take a few short weeks, and this includes the time taken to exchange contracts and pay the seller their full proceeds. By contrast, selling via an estate agent, at a property auction or without any help can all often take a number of months.

✅ Will I have to pay commission when selling my short lease flat in Mayfair?

It depends on which method you choose for finding a buyer. You will avoid having to pay any fees if you sell the property on your own or if you sell it to a legitimate zero-fee quick home buyer such as LDN Properties. But estate agents and auctioneers will charge commission for selling a Mayfair flat, and this fee will be subtracted from the eventual sale proceeds.