Funding lease extension

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    Funding lease extension

    Hi,
    I am looking to sell my let out property. Before I market it I want to extend the lease which is currently 63 years.
    I have been quoted 20k all in to extend back to 99. The market value is 180-190k.
    I did have a mortgage overdraft which has now been cut leaving me with no spare funds. Is there any way of funding this extension before selling?
    Thanks

    #2
    You have the right to apply for a statutory 90 years lease extension to 153 years at peppercorn ground rent . Extending to 99 years at new ground rent is more favourable to the freeholder.

    The Clydesdale bank are offering 5K- 15K - 25K personal loans at 3.8% - 4% interest may be helpful.

    Comment


      #3
      Thanks for the info Gordon, a loan could work if it was flexible and allow early repayment.
      I intend to sell so I was just wanting the lease to allow me full asking price. With this in mind would the longer process of statutory extension be worth the extra work?

      Comment


        #4
        I am looking at a re mortgage against the property to cover the cost of extension.

        The informal quotevof 20k all in is appealing as it takes only a couple of months.

        What are the downsides to a freeholders quote other than term only being 99 and ground rent increasing?

        Would the first problem be having to extend again in 20 years? Is there anything else to consider?

        Comment

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