There is no doubt about it a leasehold property in Chinatown is a wasting asset as a result of the shortening lease. Where the lease has, beyond one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Many flat owners in Chinatown will meet the qualifying criteria; that being said a lawyer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Chinatown with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Regardless of whether you are a tenant or a landlord in Chinatown,the lease extension lawyers that we work with will always be prepared 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.
Subsequent to lengthy discussions with the landlord of her one bedroom flat in Chinatown, Alexandra commenced the lease extension process as the eighty year deadline was fast nearing. The transaction was concluded in November 2011. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were e-mailed by Ms D Howard , who bought a one bedroom flat in Chinatown in April 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Chinatown with a long lease were worth £257,800. The mid-range ground rent payable was £65 billed quarterly. The lease expired on 14 October 2090. Having 65 years unexpired we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Chinatown premises is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case was in relation to 2 flats. The unexpired residue of the current lease was 73.92 years.