Why you should start your Chinatown lease extension

Why you should start your Chinatown lease extension today:

Increase your lease and increase your Chinatown property value

Unfortunately that a Chinatown residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Chinatown property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Chinatown will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.

Chinatown property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not grant a mortgage with a short lease

Many banks and building societies insist on a lengthy amount of time remaining on any leasehold property before they will consider it as adequate security. Regardless of whether you need a mortgage, you should be conscious that it is reasonable to assume that someone wishing to buy your property in the future might well do, so where they can't obtain a mortgage, then the market price of the property will likely suffer. Since 2008 most banks and building societies have increased the required minimum lease length that they are prepared to lend on

What makes us experts in Chinatown lease extensions?

Using our service will provide you better control over the value of your Chinatown leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Chinatown Lease Extension Case Studies:

Kai, Chinatown, London,

Kai owned a 2 bedroom apartment in Chinatown on the market with a lease of fraction over 61 years unexpired. Kai on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Kai to invoke his statutory right. Kai procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.

Chinatown case:

In 2012 we were called by Dr I Allen who, having was assigned a lease of a purpose-built flat in Chinatown in November 2008. The dilemma was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative properties in Chinatown with an extended lease were valued about £205,000. The average amount of ground rent was £50 collected annually. The lease terminated on 27 October 2105. Given that there were 79 years outstanding we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.