Lease extension vs Purchase of freehold

AT79

I have just bought a flat for £240k in SE London. There are 2 flats in the property and both have 79 years left on the lease. My neighbour is about to extend his lease by 90 years for £12k.

I understand I cannot extend my lease until I have been in the property for 2 years and IF i do decide to extend then, the cost could then be significantly higher than £12k (as costs rise drastically year by year less than 80 years) is this true? does anyone have any experience of this?

Is it too much of a risk not to extend if i want to sell it on in say 3-5 years? would it really put potential buyers off having say a 75 year lease?

Alternatively we can buy a 50% share in the freehold for £12k each now...would owning the freehold really add that much to the value?

Any tips or advice??

Many thanks in advance!

Richard_Webster

Alternatively we can buy a 50% share in the freehold for £12k each now...would owning the freehold really add that much to the value?

If you get on with the other lessee then having spent the £24K on buying the freehold between you, you then can extend the leases for nothing beyond the legal costs of doing it to 999 years with no ground rent.