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I bought my flat 4 months ago on an 88 year lease for £230k. How much would buying the freehold and extending the lease to 125 years add to the value

I bought my flat 4 months ago on an 88 year lease for £230k. How much would buying the freehold and extending the lease to 125 years add to the value?

Asked on Jan 5 2010, House Prices in London | Report content

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  • Hi there! Complicated potentially! The added value can never really be determined by the purchase of the freehold in my opinion, but the sale ability will be enhanced for sure, this in turn can obviously lead to more buyers which means more money. You will need to explore the actual possibility of being able to purchase the freehold, based on how many flats are in the block and does anyone else want to buy the freehold etc. My understanding is that if you are the only one wanting to buy it out of lets say 6 flats or more, you will not be able to! You do have a statutory right to extend the lease 50 years but once that has been exercised no more extension can be granted. It is definitely worth buying the freehold as early as you can in my opinion as the fewer years left on the lease the more expensive it may become. There are specialist firms who deal with such matters and it would be worth while contact them, but perhaps first ask your neighbours what they would like to do as you may be on a non starter, as you will all need to put some time and effort into the matter.

    Answered on Jan 7 2010, Report content
  • ** years is an "ok" lease but the longer you leave it the more expensive it will be to extend. If you let the lease get to 82 years you could have serious complications on resale and below 80 years the cost of extending will jump considerably. This question was asked 4 years ago and I wonder whether the lease has now been extended. If not there is now only 84 years left! It's amazing how quickly time can pass!

    Answered on Oct 15 2014, Report content

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