Leasehold dilemma

bouicca21

It cost my vendor £10k to add 99 years to a lease which was even shorter than OP's - and that's on a property in London that was worth way more than £130k even with a very short lease. Where does the figure of £25-£30k come from?

cattie

An elderly friend of my sister was recently in a very similar situation to you, with only 48yrs left on her lease. She was going into a care home so needed to sell the property. Local ea's valued it at around £200,000 less than a comparible property with an extended lease, which she was disapointed to hear. Extension was out of the question for her as she didn't have the finance, but then freeholder contacted her with an interest in buying the property to refurbish & sell on & the result was the agreed price (unbeknownst to freeholder) was a good £40,000 more than price local ea's had thought it would actually go for.

I'd say why not approach freeholder first to see if they would be interested in buying. The freeholder of the very 1st leasehold property I owned had contacted me when I put the flat up for sale expressing interest, but at that point I'd already had 2 offers, one close to asking price & freeholder decided he couldn't beat that. I'd imagine it can't be that uncommon for investment freeholders to buy the lease of properties under their control.

chillidonna

Bouicca21 - a neighbour was quoted this figure by the freeholder.

tim123456789

bouicca21 wrote: »

It cost my vendor £10k to add 99 years to a lease which was even shorter than OP's - and that's on a property in London that was worth way more than £130k even with a very short lease. Where does the figure of £25-£30k come from?

opening offers from FHs are almost always OTT

and there's going to be a difference in the costs of a least with a peppercorn rent

and one with GR 500 pounds doubling every 25 years (or even 10!)