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    • marmage
    • By marmage 9th Jan 18, 4:30 PM
    • 20Posts
    • 6Thanks
    marmage
    Leasehold flat 97 years left - renew now?
    • #1
    • 9th Jan 18, 4:30 PM
    Leasehold flat 97 years left - renew now? 9th Jan 18 at 4:30 PM
    Hello
    I am living in a leasehold flat for 2 years plus now. It has 97 years remaining on leasehold. I will be using all my savings to pay for renewing it so want to do it at the cheapest possible price. Is now the right time to renew considering it still has many years left? Would waiting 5-10 years more before renewing mean I may end up paying higher fees?
    Are there any laws being revised about leasehold right now that may affect my situation?
    Thanks
Page 1
    • Slithery
    • By Slithery 9th Jan 18, 4:33 PM
    • 497 Posts
    • 767 Thanks
    Slithery
    • #2
    • 9th Jan 18, 4:33 PM
    • #2
    • 9th Jan 18, 4:33 PM
    The longer you leave it, the more expensive it gets.
    • Mutton Geoff
    • By Mutton Geoff 9th Jan 18, 6:18 PM
    • 1,030 Posts
    • 1,106 Thanks
    Mutton Geoff
    • #3
    • 9th Jan 18, 6:18 PM
    • #3
    • 9th Jan 18, 6:18 PM
    How long do you plan to live in it for? Renewing a lease >80 years might be a waste of money at this stage.
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    • katejo
    • By katejo 9th Jan 18, 7:28 PM
    • 3,029 Posts
    • 1,167 Thanks
    katejo
    • #4
    • 9th Jan 18, 7:28 PM
    • #4
    • 9th Jan 18, 7:28 PM
    Hello
    I am living in a leasehold flat for 2 years plus now. It has 97 years remaining on leasehold. I will be using all my savings to pay for renewing it so want to do it at the cheapest possible price. Is now the right time to renew considering it still has many years left? Would waiting 5-10 years more before renewing mean I may end up paying higher fees?
    Are there any laws being revised about leasehold right now that may affect my situation?
    Thanks
    Originally posted by marmage
    I would wait until it gets down to about 87 before extending. I bought a flat at 99 years and sold it at 87. If I hadn't been able to sell/move then, I would have started to look at extending.
    • ileven1225
    • By ileven1225 9th Jan 18, 7:39 PM
    • 9 Posts
    • 3 Thanks
    ileven1225
    • #5
    • 9th Jan 18, 7:39 PM
    • #5
    • 9th Jan 18, 7:39 PM
    I don't think 97 years lease needs to be extended.
    • Tom99
    • By Tom99 10th Jan 18, 6:54 AM
    • 1,012 Posts
    • 615 Thanks
    Tom99
    • #6
    • 10th Jan 18, 6:54 AM
    • #6
    • 10th Jan 18, 6:54 AM
    I agree, selling with a 85y lease will not be much different to a 97y lease. Expect the lease extension premium to rise a bit for each year you defer but it will leap up if you go below 80yrs as you then have to split marriage value with the landlord.

    Use a lease extension calculator and play around with the unexpired term to give you an idea.
    • BBH123
    • By BBH123 10th Jan 18, 8:25 AM
    • 526 Posts
    • 832 Thanks
    BBH123
    • #7
    • 10th Jan 18, 8:25 AM
    • #7
    • 10th Jan 18, 8:25 AM
    Personally I would wait as there is a huge ground swell of discussion in working parties about Leasehold reform at the moment, these involve ministers and representatives of all sectors involved in property.


    There is big hope that Freeholders will be capped on what they will get for Lease extensions or even go as far as Commonhold.


    People are listening to the problems and costs Leaseholders are faced with.
    • marmage
    • By marmage 10th Jan 18, 10:20 AM
    • 20 Posts
    • 6 Thanks
    marmage
    • #8
    • 10th Jan 18, 10:20 AM
    • #8
    • 10th Jan 18, 10:20 AM
    Thankyou all for your thoughts on this. I guess the reason I am worried now is because it's money I've saved hard for over the years and every penny counts. With a little one on the way, I imagine we will outgrow this little one bed flat at some point - however at present I am thinking I will rent it out rather than sell.

    Appears the consensus is to wait. So this is probably what we will do. Perhaps the arrival of a little one will help us make decisions on what next.
    • eddddy
    • By eddddy 10th Jan 18, 10:20 AM
    • 5,662 Posts
    • 5,355 Thanks
    eddddy
    • #9
    • 10th Jan 18, 10:20 AM
    • #9
    • 10th Jan 18, 10:20 AM
    A couple of other considerations...

    It also depends when you plan to sell. If you sell within the next 2 or 3 years, the lease extension may not increase the value of the flat by very much. You might not recoup the cost of the extension.

    If you're planning to sell in 12 to 15 years, the extension will have a greater impact on price.


    Also, another 'factor' to plug into your calculations: a statutory lease extension will reduce your ground rent to zero. So your annual outgoings will be reduced.

    (But be very careful if your freeholder proposes an informal lease extension. The terms could be very unfavourable.)
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