Lease extention or Reposession / Bankrupt

Sophiesid

Hello.. I am not sure what to do and really need help ?

I sold everything I owned and paid off all my debts but it left me with a flat, which I have had for 10 years rented out, it never made any money and I let the lease go past 50yrs .. !!!!!!


I have 49 yrs left on lease, 73K owed to mortgage and it is on the market at 77K to cover fees etc and possible get offer of 75K only problem is i have interest but i need to know what the lease will cost to extent, the management company want £450 to tell me.


I think the cost will be around 13-19K !!!! which means that if i win the lottery and find this cash to purchase lease i will still be short as flat would only be worth around 85K with lease ... so do I bite bullet and have it repossessed ??? I cannot afford to carry on paying the mortgage on empty flat ... HELP ????

sezzie_6

Hey,

Just noticed this in the IVA forum. You might have more luck posting in the House Buying and Selling forum :j

UpToMyNeckInIt

Sophiesid wrote: »

Hello.. I am not sure what to do and really need help ?

I sold everything I owned and paid off all my debts but it left me with a flat, which I have had for 10 years rented out, it never made any money and I let the lease go past 50yrs .. !!!!!!


I have 49 yrs left on lease, 73K owed to mortgage and it is on the market at 77K to cover fees etc and possible get offer of 75K only problem is i have interest but i need to know what the lease will cost to extent, the management company want £450 to tell me.


I think the cost will be around 13-19K !!!! which means that if i win the lottery and find this cash to purchase lease i will still be short as flat would only be worth around 85K with lease ... so do I bite bullet and have it repossessed ??? I cannot afford to carry on paying the mortgage on empty flat ... HELP ????

You are on the wrong board (unless you are in an IVA of course?).

I had to renew the lease on my flat 7 Years ago. Despite having 75 Years on the lease remaining, it cost me £8,000. So £13-15K sounds about right today, especailly with less than 50 Years left. £19K souds 'Management Company'-Steep to me though.

If you cannot afford to renew (or remortgage the flat to raise the required amount), then you need to factor this in to what you can expect the flat to sell for.

Personally, I would think of putting the property on the market for say, £10K less than a comparable property to yours with a 'long' lease.

Where would that leave you?