Main reasons to start your Anerley lease extension

Main reasons to start your Anerley lease extension today:

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

Anerley leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Anerley will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain situations you may not be entitled. There are also strict timetables and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in Anerley with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may not loan monies on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. In the past lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Anerley?

Irrespective of whether you are a tenant or a landlord in Anerley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Anerley valuers.

Anerley Lease Extension Case Summaries:

Nathaniel, Anerley, South East London,

Nathaniel owned a conversion apartment in Anerley being sold with a lease of fraction over 72 years remaining. Nathaniel on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.

Anerley case:

In 2010 we were e-mailed by Mrs Catherine Bertrand who, having completed a newly refurbished apartment in Anerley in July 2012. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Anerley with 100 year plus lease were valued about £250,400. The mid-range amount of ground rent was £65 collected annually. The lease finished in 2090. Considering the 64 years unexpired we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including expenses.