Main reasons to commence your Chinatown lease extension

Main reasons to start your Chinatown lease extension today:

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

When it comes to residential leasehold premises in Chinatown, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years remaining. Residents in Chinatown with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below eighty years remaining, under the relevant legislation the landlord can calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not loan monies on a short lease

Lenders do not lend on short residential leases. You most probably experience problems where you wish to sell your flat in Chinatown if the remaining lease term is less than the criteria set by most mortgage companies. Different mortgage companies have different criteria but on the whole they are looking for an unexpired term of at least 65 years.

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

Irrespective of whether you are a tenant or a landlord in Chinatown,the lease extension experts that we work with will always be willing 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 Case Summaries:

Sarah, Chinatown, London,

Subsequent to protracted correspondence with the landlord of her garden flat in Chinatown, Sarah initiated the lease extension process as the eighty year threshold was rapidly coming. The legal work was finalised in June 2006. The freeholder’s charges were kept to an absolute minimum.

Chinatown case:

Last month we were contacted by Dr Toby Hernández , who acquired a basement flat in Chinatown in June 2008. The question was if we could estimate the price could be to extend the lease by a further 90 years. Comparable properties in Chinatown with a long lease were worth £206,200. The average amount of ground rent was £55 billed monthly. The lease ran out on 26 August 2082. Given that there were 56 years outstanding we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.