On the balance of probabilities if you own a flat in Anerley you actually own a long leasehold interest over your property
Leasehold properties in Anerley with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
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 conveyancer we work with provide it.
Last Autumn Henry, started to get close to the eighty-year threshold with the lease on his ground floor flat in Anerley. Having bought his property two decades ago, the length of the lease was of little concern. Luckily, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Henry was able to extend his lease at the eleventh hour in January. Henry and the landlord in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the sum would have gone up by at least £1,050.
Last Winter we were approach by Mr and Mrs. M Bailey , who owned a basement flat in Anerley in November 2000. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative properties in Anerley with an extended lease were worth £208,600. The average ground rent payable was £60 invoiced monthly. The lease lapsed on 21 February 2083. Considering the 57 years outstanding we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 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 number of years remaining on the existing lease(s) was 26.38 years.