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Lease Extension - premium increasing with property value after renovations?
Hi, my partner and I bought a 2 bed flat in outer London for £254,000 in February 2020.
The reason for the low price was twofold: the lease only has 69 years unexpired and the property is in desperate need of a complete overhaul: new kitchen, bathroom, carpets, boiler, ventilation & 2 walls knocked through. These improvements will increase the property's value by £30,000 to £50,000.
Our question is: would it be best to do the renovations first (in November of this year) and then extend the lease beginning in Fen 2022, or will the increase in value of the property also increase the premium for extension by a lot? Should we instead extend the lease first in Feb 2022 (which I understand can take many months) and then renovate when this is done?
Any advice greatly appreciated!
thanks, Nicky
The reason for the low price was twofold: the lease only has 69 years unexpired and the property is in desperate need of a complete overhaul: new kitchen, bathroom, carpets, boiler, ventilation & 2 walls knocked through. These improvements will increase the property's value by £30,000 to £50,000.
Our question is: would it be best to do the renovations first (in November of this year) and then extend the lease beginning in Fen 2022, or will the increase in value of the property also increase the premium for extension by a lot? Should we instead extend the lease first in Feb 2022 (which I understand can take many months) and then renovate when this is done?
Any advice greatly appreciated!
thanks, Nicky
