© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
RECENT RESEARCH BY E.SURV, the largest chartered surveyor in the UK, suggests that flatowners in England and Wales are at risk from shortening leasehold terms. Richard Sexton, Director, explained:”Once a lease has less than 80 years to run, the value of the property begins to fall and picks up speed the closer it gets to expiry. The potential consequences are nightmarish. Both the lender and the owner can fall into negative equity, the property becomes unmortgageable, and is therefore impossible to sell to anyone but a cash buyer.
This traps the lender and the borrower with a toxic asset that is losing value by the day. Worst case, the borrower is unable to move home, the lender is forced to repossess the property and is stuck with an asset that has plummeted in value.
As well as the threat of negative equity, failing to help mortgage borrowers renew the lease on their property – and failing to identify customers with short lease terms and alerting them to the problem – leaves lenders open to accusations that they have treated their customers unfairly.”
The North West and London, are most at risk, although the problem can be remedied by extending the lease in good time.