Anerley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Anerley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Anerley you really ought to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Anerley flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Anerley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Anerley valuers.
Thomas owned a high value apartment in Anerley being sold with a lease of a few days over fifty eight years unexpired. Thomas informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Thomas to exercise his statutory right. Thomas procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Dr Lily Harris moved into a garden apartment in Anerley in October 2010. We are asked if we could approximate the price would be to extend the lease by an additional years. Identical premises in Anerley with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced per annum. The lease ended in 2095. Given that there were 70 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
An example of a Lease Extension decision for a Anerley flat 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 was in relation to 1 flat. The unexpired term was 26.38 years.