When it comes to long leasehold premises in Anerley, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in Anerley with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has below eighty years outstanding, under the current Act the freeholder can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle 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 lawyer we work with provide it.
Edward owned a high value apartment in Anerley on the market with a lease of a little over fifty eight years left. Edward informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2010 we were contacted by Mr and Mrs. E Evans who, having took over the lease of a studio apartment in Anerley in September 2008. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable flats in Anerley with an extended lease were valued about £174,200. The average ground rent payable was £55 collected annually. The lease ran out on 4 April 2077. Having 51 years left we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The unexpired lease term was 26.38 years.