As the length of the unexpired term of a Finsbury Park domestic lease decreases so does its value and therefore the value of your property. If the residual term has, beyond one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Finsbury Park will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Finsbury Park can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 a wealth of experience 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.
Subsequent to unsuccessful discussions with the freeholder of her studio flat in Finsbury Park, Paige commenced the lease extension process just as the lease was nearing the all-important eighty-year deadline. The lease extension completed in June 2015. The freeholder’s costs were negotiated to under five hundred pounds.
In 2010 we were called by Dr O Roux who, having bought a one bedroom flat in Finsbury Park in July 2000. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in Finsbury Park with a long lease were worth £300,000. The average ground rent payable was £50 billed monthly. The lease elapsed in 2102. Having 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
An example of a Freehold Enfranchisement case 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 unexpired term was 71 years.