Buying Freehold or extending lease
I am trying to figure out if there is a difference between buying the freehold or extending a lease? My mother's flat is currently owned by her mortgage free but only has a lease left of about 40 years on it. It is likely we will need to sell it over the next 4 - 6 years ... Obviously the sale price would be very different if her lease was extended back to the original 90 years so we are weighing up the option to do this versus selling at a lower price with the short lease life. I don't know how much the lease extension would be or the cost of buying the freehold (if there is a difference between the two?) and it costs quite a bit to get this operation figured out but my guess is it would be quite a bit. The question is .. generally speaking is it better for us to reduce the cost of the sale price and get the new owners to deal with getting the extension or buying the freehold .. or get that settled first and sell at the higher price.
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