Why you should commence your Finsbury Park lease extension

Why you should commence your Finsbury Park lease extension today:

A Finsbury Park lease depreciates with the years remaining on the lease.

Finsbury Park leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher amount will be due. Flat owners in Finsbury Park will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.

Finsbury Park property with a lease extension has roughly the same value as a freehold

Leasehold properties in Finsbury Park with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to become jittery at around 75 years. This may cause difficulties when you need to market or remortgage your property as it will be effectively unmortgageable. You might not have an immediate plan to sell but when you do your purchaser will need to hold off for two years before being able to exercise the right to a an extension to the lease.

Get in touch with one of our Finsbury Park lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Finsbury Park,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Finsbury Park valuers.

Finsbury Park Lease Extension Example Cases:

Michael, Finsbury Park, North London,

Michael owned a high value apartment in Finsbury Park being sold with a lease of a few days over 59 years outstanding. Michael informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.

Finsbury Park case:

In 2011 we were contacted by Dr Harvey Peterson who, having acquired a one bedroom flat in Finsbury Park in January 2003. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Similar homes in Finsbury Park with a long lease were worth £267,600. The average ground rent payable was £65 billed annually. The lease expired on 27 May 2092. Considering the 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of legals.