Anerley residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
Leasehold properties in Anerley with more than 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The lawyers that we work with procure Anerley 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 lawyer we work with provide it.
Gabriel owned a high value flat in Anerley being sold with a lease of a little over 61 years left. Gabriel informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last Autumn we were e-mailed by Dr O Brown , who completed a ground floor apartment in Anerley in June 1996. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparative properties in Anerley with an extended lease were valued around £243,000. The average amount of ground rent was £65 collected yearly. The lease finished in 2089. Considering the 63 years outstanding we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including fees.
An example of a Lease Extension matter before the tribunal for a Anerley residence is Flats 55, 67 & 70 Melbourne Court Anerley Road in July 2013. The tribunal calculated that the premium for the extended lease at £48,366.00 for at 55, and £88,329.00 for ats 67 and 70 combined. This case related to 1 flat. The unexpired term as at the valuation date was 26.38 years.