How much will extending my lease from 73 yrs to 99 yrs increase the value of my flat

misssounsure

I'm going to extend the lease on my flat from 73 years to 99 years. I bought the flat very recently for £180 000. Approximately how much value will I have added by extending the lease? I'm only asking for a very very rough estimate as I know it depends on other factors too, including the market etc. Any vague suggestions will be much appreciated thanks.

lovehackney

Well how much are similar flats in your area going for with long leases, given you bought it recently? That's the best guide!

misssounsure

I have no idea Lovehackney as on right move etc they usually dont give the lease length

misssounsure

Also, there aren't many flats like mine around here (it was originally a large victorian house, converted into four flats. A few other houses have been converted but most remain as flats. It's in Horsham, West Sussex by the way, if that helps. I'm guessing it will add around 15K but not sure. I've had estate agent letters through the door offering free valuations, but would like to have my own idea before I let them value.

bris

How much is it to extend the lease? the extra value would be obviously capped at that point, as any new owner could very easily do it themselves.

misssounsure

bris wrote: »

How much is it to extend the lease? the extra value would be obviously capped at that point, as any new owner could very easily do it themselves.

£8000 to extend from 73 years to 99. However if I left it it gets more and more expensive each year that goes by

lessonlearned

I think the real issue with short leases is they can make it more difficult to get a mortgage, lenders can be a bit iffy.

So it depends on how long you envisage staying in the property and how significant the increases are likely to be in the years to,come.

If you can afford it I would say extend the lease now, you might save quite a bit money in the long term and that extra 26 years would give you peace of mind knowing that there is a long lease when you come to sell.

chewmylegoff

why only extending by 26 years?

Have you read this:
http://www.moneysavingexpert.com/mortgages/extend-your-lease

princeofpounds

There are two way of looking at this.

Theoretically, it will boost the value of your property by the amount you pay. I.e. If you buy something for 8k, it is worth 8k.

Practically speaking, it can make a big difference if you actually want to sell. Without a long enough lease, only cash buyers can buy your property. That can easily downvalue your house as it excludes most buyers. But it is more about removing a big negative than anything else.

At under 80 years you really should get on with it because under 80 years the price of lease extensions grows at an accelerating pace every year.

££sc££

why extending to 99 years - lot of expense for only few extra years, usually add an additional 90 years onto remaining lease length.

i'd get a few estate agents around for a free valuation