There is no doubt about it a leasehold flat or house in Finsbury Park is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Finsbury Park will qualify for this right; however a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Finsbury Park can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
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 Finsbury Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ali was the the leasehold proprietor of a studio apartment in Finsbury Park on the market with a lease of a little over sixty years outstanding. Ali on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2013 we were e-mailed by Mr James André who, having was assigned a lease of a one bedroom apartment in Finsbury Park in April 1995. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar properties in Finsbury Park with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed yearly. The lease ran out in 2099. Given that there were 73 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Finsbury Park flat is 51 Lorne Road in November 2009. The price Payable as decided by the tribunal for the freehold reversion was £27,000. The valuation follows the order of the County Court made on 3 April 2008 granting a vesting order. This case affected 1 flat. The remaining number of years on the lease was 71 years.