Main reasons to start your Finsbury Park lease extension

Top reasons for lease extension now:

A Finsbury Park lease depreciates with the years remaining on the lease.

Finsbury Park 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. Legislation has been in place for sometime now allowing qualifying Finsbury Park residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Finsbury Park you should see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

Finsbury Park property with a lease extension has roughly the same value as a freehold

Leasehold properties in Finsbury Park with more than 100 years unexpired 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to loan monies with a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with less than 70 years remaining - although this varies from lender to lender. A buyer will no doubt encounter difficulties in obtaining a mortgage and this will result in your Finsbury Park property being difficult to dispose of or to obtain finance on.

Get in touch with one of our Finsbury Park lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Finsbury Park,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Finsbury Park valuers.

Finsbury Park Lease Extension Example Cases:

Teddy, Finsbury Park, North London,

Teddy was the the leasehold proprietor of a high value apartment in Finsbury Park on the market with a lease of fraction over fifty eight years left. Teddy informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Teddy to invoke his statutory right. Teddy procured expert legal guidance and secured an acceptable resolution informally and sell the flat.

Finsbury Park case:

Last year we were contacted by Dr O Martinez , who bought a basement apartment in Finsbury Park in June 2008. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable flats in Finsbury Park with a long lease were valued around £216,000. The mid-range ground rent payable was £60 collected quarterly. The lease concluded in 2084. Having 58 years remaining we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.