When it comes to domestic leasehold property in Anerley, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than 80 years left. Leasehold owners in Anerley with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below 80 years left, under the current legislation the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Anerley with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service 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. |
| Lloyds TSB Scotland | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Anerley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Anerley valuers.
Eli owned a high value apartment in Anerley on the market with a lease of a little over 59 years remaining. Eli informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Eli to exercise his statutory right. Eli obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last Autumn we were phoned by Mr and Mrs. A González , who owned a one bedroom flat in Anerley in August 2012. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Anerley with a long lease were in the region of £223,400. The average amount of ground rent was £60 invoiced every twelve months. The lease concluded in 2085. Considering the 59 years unexpired we calculated the premium to the landlord to extend the lease to be between £27,600 and £31,800 plus costs.
An example of a Lease Extension matter before the tribunal for a Anerley property 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 number of years remaining on the existing lease(s) was 26.38 years.