Anerley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the 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. Where you are a leasehold owner in Anerley you would be well advised to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Anerley flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Anerley with in excess of one hundred years left on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Anerley can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Anerley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Sam, came very near to the 80-year mark with the lease on his two bedroom apartment in Anerley. Having purchased his home twenty years ago, the length of the lease was of little bearing. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Sam extended the lease just in the nick of time in January. Sam and the landlord in the end settled on an amount of £5,500 . If the lease had dipped to less than 80 years, the amount would have gone up by at least £950.
Mr T Turner completed a basement apartment in Anerley in July 2011. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical homes in Anerley with a long lease were worth £240,600. The average amount of ground rent was £60 billed monthly. The lease expiry date was on 23 May 2087. Having 62 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus costs.
An example of a Lease Extension case for a Anerley premises 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.