Torn between two ideas

Pixie5740

Do you plan on only ever living in this flat? In which case the length of the lease won't necessarily matter. If you can envisage a time when you might need to sell then you really need to look at extending the lease sooner rather than later.

http://www.moneysavingexpert.com/mortgages/extend-your-lease

Ollie345

No way do I want to live here forever, but I would not rule out holding on to the flat to let out (option two), so I may not sell it when I did move x

Doozergirl

Ollie345 wrote: »

No way do I want to live here forever, but I would not rule out holding on to the flat to let out (option two), so I may not sell it when I did move x

You need to renew the lease! It doesn't matter if you want to keep it, what is the point of buying another flat (with stresses of being a landlord and a leaseholder paying for huge repair bills at the whim of the property managers) which someone elses pays for, while your flat devalues every year as the value reverts to the freeholder until it is worth zero. Your net gain gets closer to nothing.

It's a no brainer for now. The longer you keep it without extending, the less it is worth and the higher the extension cost. It will have to be renewed at some point, and it will be you or your estate paying for it.

Ollie345

Ok I've had a look at the guide and wondering whether to contact the freeholder for an informal quote or go straight for a valuation from a surveyor?

zagubov

You'll probably have to do both in the end.

Ollie345

I guess, is it best to get a valuation before asking the freeholder for extra years??

economic

you can estimate a valuation yourself. do this before anything else and see if you can afford it. you will have to pay the legal and valuation fees for yourself nd the freeholder. this alone can amount to £1000s.

if i were you i would consider informal approach to save on valuation fees. are you on freidnly terms with freeholder?

Doozergirl

Ollie345 wrote: »

I guess, is it best to get a valuation before asking the freeholder for extra years??

Chicken and egg.

The freeholder may offer different options; Cheaper extension versus increased ground rent. Personally, I would check an online calculator and ask for their prices first thenrun the options past the person carrying out your own valuations.

Ollie345

The mse calculator says a price of 18-19000 plus fees , for 90 years.is this comparable to a quote of less years and higher ground rent? Or should such a quote be less due to the not so good terms?