Funding lease extension

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    Funding lease extension

    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?

    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.


      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?


        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?


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