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  • FIRST POST
    • Cliom
    • By Cliom 9th Jul 17, 3:34 PM
    • 9Posts
    • 0Thanks
    Cliom
    All the gear and no idea - can i remortgage/extend my lease/extend my flat?
    • #1
    • 9th Jul 17, 3:34 PM
    All the gear and no idea - can i remortgage/extend my lease/extend my flat? 9th Jul 17 at 3:34 PM
    Hi,
    looking for advice. I own a flat on my own, I bought it for 220k and have 160k left on the mortgage, it's just been valued at 500k. I haven't looked at my mortgage for around 4 years and have a tracker mortgage. I would like to do an extention as the kitchen and bathroom are tiny and I have a growing family and a big garden. Also I would like to extend the lease in the flat as it is at 86 years or should I buy the freehold? Who do I go to see with these questions? A financial advisor? A mortgage broker? The bank? You guys? My salary is lower than from when I last bought a new mortgage and I now have 2 children so would it still be possible?
    Honestly I haven't a clue at this point!

    My husband owns a flat with his dad and lived with him until 2 years ago. They currently have a tenant in his old room living with him but his dad has moved his new girlfriend in and love has turned him doolally so not sure how much longer the lodger will want to live there. My husband REALLY wants to sell the flat and cut ties with his dad for many many reasons but his dad is not in a position to buy him out. The lease for this flat has fallen to 74 years to extend this they would have to remortgage? My father in law does not have a clue about leases etc and will leave it and never do it, my husband isn't that much better...I am only slightly better than them and the dream would be for someone to come along and tell me exactly what to do - does that service exist? Sorry if I sound stupid!!
Page 1
    • AdrianC
    • By AdrianC 9th Jul 17, 4:47 PM
    • 14,791 Posts
    • 13,143 Thanks
    AdrianC
    • #2
    • 9th Jul 17, 4:47 PM
    • #2
    • 9th Jul 17, 4:47 PM
    So your mortgage is currently only around 32% loan to value, and you have £340,000 equity in the property... That's great, but...

    If you want a larger mortgage against it, you will still need to pass the affordability rules for lenders. What's your salary, and how does it sit against a £200k+ mortgage? With, or without your husband's earnings taken into account? What's the score with your "growing family" and your earnings in the near future?

    Now is a REALLY good time to extend the lease on your flat, because it's heading rapidly towards 80 years, and rising rapidly through marriage values. It's likely to be about £5k currently, but not for much longer. In five years, it will probably have doubled, and again in another five years. Can you afford this without borrowing? Freehold - how big is the block? What do the other leaseholders want to do?

    Your husband is joint owner of another property - with a lease that's borderline unmortgageable, and is already into that rapidly-rising territory. He basically has a choice - if his father can't take on the mortgage alone, then he can either stay a joint owner, or he can force a sale.

    TBH, I'd suggest the leases are your first priority. Then look into what to do with the father's property. Can I ask how old the father is, and his health? I'm just wondering if it's likely to be an issue, long-term...
    • AnotherJoe
    • By AnotherJoe 9th Jul 17, 4:52 PM
    • 7,055 Posts
    • 7,531 Thanks
    AnotherJoe
    • #3
    • 9th Jul 17, 4:52 PM
    • #3
    • 9th Jul 17, 4:52 PM
    How do you extend a flat?
    I doubt you can buy the freehold for your flat. You can perhaps buy the freehold for the building that contains the flats.
    • AdrianC
    • By AdrianC 9th Jul 17, 4:59 PM
    • 14,791 Posts
    • 13,143 Thanks
    AdrianC
    • #4
    • 9th Jul 17, 4:59 PM
    • #4
    • 9th Jul 17, 4:59 PM
    How do you extend a flat?
    Originally posted by AnotherJoe
    It's a lot easier with a ground-floor flat than one on an upper floor. Gardens tend to come with ground-floor flats, too.
    • Cliom
    • By Cliom 12th Jul 17, 6:13 AM
    • 9 Posts
    • 0 Thanks
    Cliom
    • #5
    • 12th Jul 17, 6:13 AM
    • #5
    • 12th Jul 17, 6:13 AM
    It's a ground floor maisonette and I own the whole garden. There is one maisonette on the first floor above me.
    • AnotherJoe
    • By AnotherJoe 12th Jul 17, 8:18 AM
    • 7,055 Posts
    • 7,531 Thanks
    AnotherJoe
    • #6
    • 12th Jul 17, 8:18 AM
    • #6
    • 12th Jul 17, 8:18 AM
    It's a ground floor maisonette and I own the whole garden. There is one maisonette on the first floor above me.
    Originally posted by Cliom
    Own it freehold?Or own the leasehold ?
    • Cliom
    • By Cliom 12th Jul 17, 1:36 PM
    • 9 Posts
    • 0 Thanks
    Cliom
    • #7
    • 12th Jul 17, 1:36 PM
    • #7
    • 12th Jul 17, 1:36 PM
    I own the leasehold....
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