It’s a harsh certainty that a Anstey residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Anstey property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Anstey will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Anstey with over 100 years unexpired on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Santander | |
| Skipton Building Society | |
| TSB | |
| Virgin |
The conveyancers that we work with handle Anstey 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.
Reuben was the the leasehold proprietor of a studio apartment in Anstey on the market with a lease of a few days over 72 years left. Reuben on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were e-mailed by Mr and Mrs. V François who, having purchased a purpose-built apartment in Anstey in October 1997. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical properties in Anstey with a long lease were worth £191,400. The mid-range ground rent payable was £55 invoiced monthly. The lease concluded in 2080. Taking into account 54 years unexpired we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 not including fees.
Mr Hugo Clarke took over the lease of a purpose-built apartment in Anstey in March 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Anstey with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 collected per annum. The lease came to a finish in 2100. Given that there were 74 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.