Why you should commence your Chinatown lease extension

Why you should commence your Chinatown lease extension today:

A Chinatown leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Chinatown. Clearly, the period of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Chinatown have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give due consideration before delaying your Chinatown lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease

An extended lease has roughly the same value as a freehold

It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.

Mortgage lenders may not grant a mortgage on a short lease

Most mortgage lenders have narrowed their lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are deemed to be insufficient for lending purposes.

What makes us experts in Chinatown lease extensions?

Irrespective of whether you are a tenant or a freeholder in Chinatown,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chinatown valuers.

Chinatown Lease Extension Example Cases:

Aarav, Chinatown, London,

Aarav owned a studio flat in Chinatown on the market with a lease of a little over sixty years outstanding. Aarav on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.

Chinatown case:

Ms I Brown moved into a newly refurbished apartment in Chinatown in September 2011. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Similar premises in Chinatown with an extended lease were worth £280,000. The average amount of ground rent was £45 collected monthly. The lease finished on 2 July 2096. Having 70 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.