As the length of the unexpired term of a Chinatown residential lease diminished so does its value and therefore the value of your property. If the residual term has, beyond 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. Most flat owners in Chinatown will qualify for this right; that being said a lawyer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Chinatown with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Chinatown can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Chinatown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the landlord of her studio apartment in Chinatown, Olivia started the lease extension process as the 80 year threshold was rapidly approaching. The transaction was finalised in November 2015. The landlord’s fees were negotiated to under 600 GBP.
In 2012 we were called by Mr Isaac Ali who, having acquired a one bedroom flat in Chinatown in February 1997. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar properties in Chinatown with an extended lease were valued about £243,000. The average amount of ground rent was £65 collected every twelve months. The lease finished in 2089. Considering the 63 years unexpired we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Chinatown residence is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case related to 2 flats. The unexpired residue of the current lease was 73.92 years.