Why you should start your Chinatown lease extension

Why you should start your Chinatown lease extension today:

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

Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Chinatown. Clearly, the period of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Chinatown have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give due consideration before putting off your Chinatown lease extension. Holding off that expense now simply increases the price you will eventually incur to extend your lease

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

It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lenders may not lend with a short lease

Banks and Building Societies have set criteria when loaning funds secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term falls below a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than 75 years suitable security. As well as this being important when selling, it is also relevant where you are intending to refinance your Chinatown home.

Get in touch with one of our Chinatown lease extension solicitors or enfranchisement solicitors

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 conveyancer we work with provide it.

Chinatown Lease Extension Example Cases:

Aarav, Chinatown, London,

Aarav was the the leasehold proprietor of a conversion flat in Chinatown on the market with a lease of a few days over 59 years outstanding. Aarav informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Aarav to exercise his statutory right. Aarav procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Chinatown case:

In 2012 we were approached by Dr Y Hernández who, having took over the lease of a first floor flat in Chinatown in October 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Chinatown with a long lease were worth £285,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ran out on 4 July 2097. Considering the 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.