Leasehold properties worth less than £2m could still pay ‘mansion tax’
Original Article Summary
Leasehold properties are set to be valued assuming all leases have 99 years left, which means homes worth under £2million are in danger of being caught up by Labour’s ‘mansion tax’. Properties with shorter leases tend to be devalued, by as much as 30%. From 2028 homes valued at more than £2million will be liable […] The post Leasehold properties worth less than £2m could still pay ‘mansion tax’ appeared first on PropertyWire.
PropMatch Curated Analysis
Labour's mansion tax will value leasehold properties as if they have 99-year leases, potentially catching properties actually worth under £2m in the tax net due to their artificially inflated valuations.
Investor Relevance
Critical for leasehold investors as properties with short leases (which trade at discounts of up to 30%) will be taxed based on their theoretical 99-year lease value, creating unexpected annual tax bills of £2,500-£7,500 from 2028.
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