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Lease extension

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
in Home, Law & Money
I own one of my properties on a leasehold - and have been given the option to add 99 years to the lease for a small (well, 5 figures) fee.

How much do you think is added to the resale value based on just having a longer lease :think:

I'm not sure this would be worth it (adequate space left for me to die out, and then some is already remaining on current lease)

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I think it would depend on the location of the property :thumb:
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    most mortgage lenders will only lend on the mortgage term + 30 years, so even if you have 60 years left on your lease its not actually that long, and not useful when you want to sell.

    it might not add all of what you pay, but it will make it a lot easier to sell/remortgage. and you make a saving when you do it at the landlords offer, as if you do it when you need to the landlord can and will ask a ridiculous fee.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Yes most buyers wouldn't touch a place unless it had 80years or more left on the lease - so if you ever want to sell then you would almost certainly have to increase the lease at that point.

    However i do belive that your also supposed to be given the option to by the freehold as well at a certain stage - but maybe thats just if the lease holder deicdes to sell and then you must be given first refusal.
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