Finsbury Park leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease drops below eighty years - otherwise a higher amount will be payable. Leasehold owners in Finsbury Park will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire 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. |
The conveyancers that we work with handle Finsbury Park 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 conveyancer we work with provide it.
In recent months Teddy, started to get near to the 80-year mark with the lease on his studio flat in Finsbury Park. Having purchased his flat two decades ago, the length of the lease was of no significance. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Teddy extended the lease at the eleventh hour in July. Teddy and the landlord subsequently agreed on an amount of £5,500 . If he not met the deadline, the amount would have become more costly by a minimum £925.
In 2012 we were phoned by Mr and Mrs. V Michel who, having moved into a purpose-built flat in Finsbury Park in April 1996. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative homes in Finsbury Park with an extended lease were valued around £275,000. The average ground rent payable was £65 collected every twelve months. The lease finished in 2093. Considering the 68 years outstanding we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
An example of a Freehold Enfranchisement case for a Finsbury Park premises 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 related to 1 flat. The unexpired term as at the valuation date was 71 years.