Hi all,
I have the choice of using my available funds then to extend this lease on my existing rental flat (65 years now) or use as a deposit on a 2nd property.
What is interesting with the freeholders quote I have, to extend to 99 years, is the total ground rent of the original lease and the proposed new lease.
With the original lease which was written around 1980, ground rent is in 3 stages, increasing every 33 years. Total ground rent just under £5000 for the whole 99 years.
With the proposed extension the freeholder wants £250 a year doubling every 20. This works out to over £150,000 over the 99 years?!
Also the term is not as long as a statutory term (adding 34 years instead of 90). The premium is £16,500 plus a fee and it would add about £20k to the value approx.
So, not sure whether to do the usual buy-to-let thing of buying another property when you have the capital, which could bring me another income, or to concentrate on the first property and extend the lease now or put it off for several more years.
Any advice on which way to go? It would be annoying if property prices went up and I missed the boat because I was paying for a lease extension instead, but then I've heard you should extend a lease asap after it goes below 80 years.
I have the choice of using my available funds then to extend this lease on my existing rental flat (65 years now) or use as a deposit on a 2nd property.
What is interesting with the freeholders quote I have, to extend to 99 years, is the total ground rent of the original lease and the proposed new lease.
With the original lease which was written around 1980, ground rent is in 3 stages, increasing every 33 years. Total ground rent just under £5000 for the whole 99 years.
With the proposed extension the freeholder wants £250 a year doubling every 20. This works out to over £150,000 over the 99 years?!
Also the term is not as long as a statutory term (adding 34 years instead of 90). The premium is £16,500 plus a fee and it would add about £20k to the value approx.
So, not sure whether to do the usual buy-to-let thing of buying another property when you have the capital, which could bring me another income, or to concentrate on the first property and extend the lease now or put it off for several more years.
Any advice on which way to go? It would be annoying if property prices went up and I missed the boat because I was paying for a lease extension instead, but then I've heard you should extend a lease asap after it goes below 80 years.