I own a leasehold tenanted flat in Hastings on an interest only mortgage which is due for repayment in May 2024. It is handled by an agent who guarantees the rent. This agreement is due to finish in December this year. The lease expires in September 2116 (92 years remaining).Question:The head leaseholder offers a lease extension facility and has the below on a page on their website.When’s the best time to extend my lease?If you extend your lease when it gets to around 83 – 85 years, you’ll save a lot of money.After your lease drops to 80 years or less, you’ll have to pay 50% of the flat’s ‘marriage value’ on top of the usual lease extension price.It has always been my intention to sell the property at the ‘right time’. Current value is estimated at £115K.Is a 92 year lease an acceptable length to effect a current market value sale?Will all the costs incurred in a lease extension be covered by an increase in value and then some for a possible sale in two years?Any advice or thoughts welcome!
Hi Chris, the unexpired lease term is sufficient for any buyer to easily get a mortgage, so i would sell now, no need to extend the lease. The property market looking ahead is likely to get very weak, so dont wait around for a lease extension which is unlikely to yeield any further financial benefit.
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