Why you should commence your Chinatown lease extension

Top reasons for lease extension now:

Increase your lease and increase your Chinatown property value

Chinatown leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Chinatown enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Chinatown you must check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lending institutions will not grant a mortgage on a short lease

Lending institutions have set criteria when loaning monies secured on leasehold property. Many will simply refuse lend at all once the remaining lease term falls lower than a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than seventy years suitable security. In addition to this being important when selling, it is also relevant if you are wanting to refinance your Chinatown property.

What makes us experts in Chinatown lease extensions?

The conveyancers that we work with undertake Chinatown lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Chinatown Lease Extension Example Cases:

Tommy, Chinatown, London

In 2014 Tommy, came critically close to the 80-year threshold with the lease on his leasehold flat in Chinatown. In buying his home two decades ago, the lease term was of little bearing. by good luck, he realised he would imminently be paying way over the odds for a lease extension. Tommy extended the lease at the eleventh hour last June. Tommy and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If the lease had dipped below eighty years, the price would have increased by a minimum £1,000.

Chinatown case:

Mr and Mrs. H Morgan bought a first floor flat in Chinatown in June 1999. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Chinatown with 100 year plus lease were valued around £260,200. The average amount of ground rent was £65 collected monthly. The lease elapsed in 2092. Given that there were 66 years remaining we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 plus legals.