8:40 AM, 13th November 2020, About 3 years ago 17
I own a flat in the South of England which produces about £400 monthly positive cashflow. It also has around £30,000 of equity currently.
However, the lease is down to 57 years and I have 7 years left on a very low mortgage rate. Quote to renew the lease is £23500 + legals.
The question is do I borrow and renew lease now, assuming a 5 year secured loan at 3%, costing around £500 a month or do I wait until nearer the end of the mortgage term and enjoy another 5 years of positive cashflow and renew or sell losing the equity then?
My properties are my only source of income and £500 a month negative cashflow may be affordable but will restrict lifestyle for a while. Any thoughts would be most welcome, particularly if you have any idea how much more the cost of renewing the lease 5 years later might be.
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