Chinatown leases on domestic deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. Leasehold owners in Chinatown will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Chinatown with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Chinatown leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tyler owned a studio flat in Chinatown being sold with a lease of a little over 59 years left. Tyler on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Tyler to exercise his statutory right. Tyler procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Mr and Mrs. E Jackson bought a basement apartment in Chinatown in August 1995. The question was if we could approximate the premium would be to prolong the lease by ninety years. Comparable flats in Chinatown with a long lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease termination date was in 2105. Given that there were 80 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
An example of a Freehold Enfranchisement case for a Chinatown property is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case affected 2 flats. The unexpired term was 73.92 years.