Extend Your Lease guide discussion

System

richardw wrote: »

If flat prices are rising then the costs and marriage value may be covered by a rise in price, but if the market goes the other way who knows.

Thanks for the replies. I realise there is a certain element of the unknown about the costs/values....I was just generally wondering if I could expect to get most of the outlay back when I come to sell in a year or two.

Thanks!

Red.

SKPatel

In_The_Red_2009 wrote: »

Thanks for the replies. I realise there is a certain element of the unknown about the costs/values....I was just generally wondering if I could expect to get most of the outlay back when I come to sell in a year or two.

Thanks!

Red.

If your lease is currently at 66 years then certainly an extension of that term will increase the value of your property. However, the extent of the increase is something you should discuss with your surveyor.

Unfortunately, with only 66 years remaining you may find it difficult to find a buyer and you're almost pushed into a corner having to extend your lease.

System

SKPatel wrote: »

If your lease is currently at 66 years then certainly an extension of that term will increase the value of your property. However, the extent of the increase is something you should discuss with your surveyor.

Thanks! I will speak with my surveyor to get an idea of the increased value.

SKPatel wrote: »

Unfortunately, with only 66 years remaining you may find it difficult to find a buyer and you're almost pushed into a corner having to extend your lease.

I agree and this is exactly why I have already begun the process!

Sepa74

How did you find the info? If you've done it, how did it go and do you have any other tips you'd add? How much value do you think it added to your property?

Hi everyone, I don't have time to add value to ongoing discussions, but thought people might like to hear my lease extension experience.

I was SO lucky that I spent some time talking to a colleague about his (expensive) experiences buying the freehold and discovered that 80 is the magic number when it comes to leases. I had 84 years on my lease, and had owned my house for just over two years. Now I pass on the favour to everyone I know who has a lease...

I spoke to my solicitor, who said just send a request for a quote to extend the lease to the freeholder. They came back with a price, and I rang a lease specialist (I just googled) who basically said I could get it cheaper but the ground rent would go up. He declined to charge me anything, which was very lovely of him and I wish I could remember his name so I could pass it on!

Once I accepted the quote my solicitor worked with the freeholders to do the paperwork. The solicitors fees were £500 from memory, and the lease extension of 125 years cost £3,500 (again from memory).

I have no idea how much value it actually added, but it certainly saved me money as if I'd left it even 5 years it would have been MUCH more expensive. I view it as an investment that has preserved the value of my property and given me peace of mind. My advice is do it sooner rather than later, don't stick your head in the sand.

richardw

Sepa74 wrote: »

..They came back with a price, and I rang a lease specialist (I just googled) who basically said I could get it cheaper but the ground rent would go up...

Did you seek advice from more than one "lease specialist" or just rely on this free 'advice'?

right_or_fight

Hi Guys,

Need some advice. My current flat has a 40 year lease left. To renew the will cost £34,000 for 125 years. Flat is worth between £165k-£175.

Have you guys got any advice which can help me bring down the intial quote of £34k? Please help

richardw

right_or_fight wrote: »

Flat is worth between £165k-£175.

with a 40 year lease?

right_or_fight

sorry £165k-£175k is with a lease over 80 years +
(hope this makes sense)

richardw

right_or_fight wrote: »

sorry £165k-£175k is with a lease over 80 years +
(hope this makes sense)

So without a new lease it is worth less than £115K?

Where did you get the £34k from?

right_or_fight

34k is what the leaseholder quoted me in regards to renewing the lease from 40 years to 125 years. Once this is renewed the the property value should be worth around £165k-£175k