When it comes to residential leasehold property in Finsbury Park, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than 80 years left. Leasehold owners in Finsbury Park with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has under 80 years left, under the relevant statute the freeholder can calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Finsbury Park with in excess of 100 years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Finsbury Park can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in lease extensions.
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 procuring 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.
Off the back of unsuccessful correspondence with the landlord of her studio flat in Finsbury Park, Alice started the lease extension process just as the lease was coming close to the critical 80-year deadline. The legal work was concluded in March 2006. The landlord’s costs were kept to an absolute minimum.
Mrs Y Allen purchased a one bedroom apartment in Finsbury Park in May 2006. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Finsbury Park with 100 year plus lease were in the region of £166,800. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded on 21 September 2076. Having 50 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Finsbury Park property 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.