Lease Extension

Jessica_W

Hi All,

I've been trying to find a rough, ballpark figure for lease extension on my flat (without spending money on a proper valuation just yet!)

My flat has a lease of 77 years and is worth 330k. Could anyone give me a rough estimate of the cost to extend??? I really just want to know how much saving I need to do!

Thanks all.

katieowl_2

This site had a calculator: http://www.lease-advice.org/livingframe.htm

I can give you a very rough idea...I was told by an estate agent last year that the flat upstairs from me would be £12-15K to extend (that was 74 years remaining and £280-300K flat) but the prices have gone up 10% since then and OUR calculation on the site above make it nearer £20K. Don't forget that you will have to pay all the legal fees for the Freeholder too.

I'm in the other position to you...I'm a Freeholder DESPERATE for the lease to be extended, we are in dire straights at the moment!

Regards

Kate

hedgehogpenguin

wow... 20k seems a lot. I just had a quote from my freeholder , again in london, again with a 77 year lease, and he suggested 12k. Should I bite his hand off at this, or should I not even bother extending as I plan to sell in 3-4 years anyway. I don't mean to hijack your post by the way, but think we're in similar situations!!

ownerofthemoneypit

Hello Hedgehogpenguin,

I'm trying to sell a flat with 78 years on the lease and no first time buyer will touch it. The longer you leave it the more expensive it will become to extend, and the more difficult it will be to find a buyer, this is the position I am in at the moment.

do_it_today!

Hi all :hello:
I enquired about a 2bed flat in SE london today on the market for £165k only 52 years on the lease!!! vendor advises it will cost £34k to extend it and the market value with lease should be 200K I enquired with mortgage advisor and if I wanted to buy that flat I could only take out a 22 year mortgage as there would need to at least 30years left on lease after flat paid for. If I was a ftb I wouldnt even think about it tbh. I have flat and need to extend the lease it (70 years) so at the start of the process my aim is to start the bidding at 5k and move from there...
I guess really depends on circumstance / supply and demand and whether you are willing to give a discount at time of sale right now it is a sellers market in my area

do_it_today!

owner of money pit
the other thing you could do is start negotiations for the lease so new buyer will know exact cost and can make a choice based on that... it will also mean they wont have to wait another two years for them to appy for extending the lease - this arrangement might be more attractive...

scope

I have never understood this whole leasehold business.. Its like renting your own house, and once the lease runs out (say you forget to renew) you loose the house.. Nah, give me a freehold property any day.