When it comes to domestic leasehold premises in Finsbury Park, you are in fact renting it for a certain period of time. Modern 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. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Leasehold owners in Finsbury Park with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has fewer than 80 years outstanding, under the relevant statute the freeholder can calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancing solicitors 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 lawyer we work with provide it.
Nathan was the the leasehold proprietor of a conversion apartment in Finsbury Park being marketed with a lease of a few days over 61 years left. Nathan informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were phoned by Ms Louise François who, having acquired a studio apartment in Finsbury Park in July 1999. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar residencies in Finsbury Park with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 collected per annum. The lease terminated in 2080. Having 55 years outstanding we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.
An example of a Freehold Enfranchisement decision 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 71 years.