The market value of a leasehold property in Finsbury Park depends on how long the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed ahead of the 80 year mark. Statute enables Finsbury Park qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Finsbury Park leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Noah, started to get near to the 80-year threshold with the lease on his ground floor apartment in Finsbury Park. Having bought his property two decades ago, the lease term was of little concern. by good luck, he realised he needed to take action soon on Extending the lease. Noah extended the lease just in the nick of time in January. Noah and the landlord ultimately settled on the final figure of £6,000 . If the lease had descended lower than eighty years, the price would have escalated by at least £1,150.
Last Christmas we were contacted by Mr and Mrs. L Roux , who owned a one bedroom apartment in Finsbury Park in September 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable homes in Finsbury Park with 100 year plus lease were valued about £184,000. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish on 19 March 2079. Taking into account 53 years outstanding we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.
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 related to 1 flat. The number of years remaining on the existing lease(s) was 71 years.