The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Finsbury Park may extend the lease for an additional 90 years under legislation. Please give careful consideration before delaying your Finsbury Park lease extension. Putting off the costs now simply increases the amount you will eventually be required to pay to extend the lease.
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 value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Last October Mason, came dangerously close to the 80-year threshold with the lease on his ground floor apartment in Finsbury Park. In buying his flat 19 years previously, the lease term was of little significance. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Mason arranged for a lease extension at the eleventh hour in June. Mason and the freeholder subsequently settled on the final figure of £5,500 . If the lease had gone to less than eighty years, the figure would have escalated by a minimum £850.
Last September we were phoned by Mrs Phoebe Baker , who purchased a one bedroom apartment in Finsbury Park in February 1998. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative premises in Finsbury Park with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 billed per annum. The lease expired in 2085. Given that there were 59 years as a residual term we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus legals.
An example of a Freehold Enfranchisement case 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 related to 1 flat. The unexpired term was 71 years.