87 yrs left on lease-Worth extending before selling?

HelenLJ

Hello all,

I have 87 years left on my flats lease (worth about £420,000) - I'm looking to put it on the market soon, but can't get a sense of whether it would be worth extending the lease to increase it's market value. I've calculated that a lease extension would be £4-6k plus fees. Any ideas or links to resources on whether I'd recuperate these costs in an increase flat value when selling?

Thanks for your thoughts.

eddddy

HelenLJ wrote: »

I've calculated that a lease extension would be £4-6k plus fees. Any ideas or links to resources on whether I'd recuperate these costs in an increase flat value when selling?

It's best to ask your local EAs.

For a statutory lease extension, fees might be £3k to £4k.

I guess the broad choice for buyers would be:

a) £430k for the flat with an extended lease

b) £420k for the flat without an extended lease, with the expectation of paying about £10k in 5 or 6 years time


Some buyers who are stretching the limit of their budgets might prefer to pay £420k now, and have 5 or 6 years to save up the extra £10k.

Other buyers might be panicked by the thought of having to do a lease extension.

Slinky

What sort of length will you be putting on the lease? Back up to say 99 years isn't so much of a positive than going up to say 199 years IMO

Tom99

[FONT=Verdana, sans-serif]It will probably take you several months to conclude a statutory lease extension, can you wait that long before putting the flat on the market?[/FONT]
[FONT=Verdana, sans-serif]If not it might be best to market as is, you can always offer to serve and assign a notice if that is what the purchasers want.[/FONT]