Lease Extension costs

[MBD]

I have a property with a 78 year lease left. Rental is approx £660 per month and value is £145k. I have approached the Freeholder and he is willing to extend the lease for 50 years for 3.16% of the market value i.e £4,582 + £350 legal costs. He has set a deadline as the 1st April otherwise he will revise !!

Is this a good deal ????????????????????????????

Will it cause me problems if I sell in the next few months without extending the lease first ??????

Any help/advise appreciated

[Mortitia]

This is the downside of buying leasehold properties without a long lease.

It probably is a good deal. Put it this way you will have to sell at well below market value if you don't extend so might as well bite the bullitt and do it now. Try and get 999 years on the new lease by saying you will agree to his price on this condition. That makes it a more attractive purchase.

If you don't extend any would be purchaser will know there is a difficult freeholder at the back of things.

You don't say what you paid for the flat in the first place which is what I would take into account rather than the income.

Good Luck,

Mortitia

[MBD]

This is the downside of buying leasehold properties without a long lease.

It probably is a good deal. Put it this way you will have to sell at well below market value if you don't extend so might as well bite the bullitt and do it now. Try and get 999 years on the new lease by saying you will agree to his price on this condition. That makes it a more attractive purchase.

If you don't extend any would be purchaser will know there is a difficult freeholder at the back of things.

You don't say what you paid for the flat in the first place which is what I would take into account rather than the income.

Good Luck,

Mortitia

Mortitia

Thanks good advice. I paid £130k for the property so not a lot of profit in the equation

Cheers

MBD