There is no doubt about it a leasehold flat or house in Finsbury Park is a wasting asset as a result of the shortening lease. If the lease has, beyond 125 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. The majority of flat owners in Finsbury Park will qualify for this right; however a lawyer should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Finsbury Park with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Finsbury Park can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
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 in-depth market knowledge dealing with 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.
16 months ago Mason, came very near to the 80-year threshold with the lease on his one bedroom flat in Finsbury Park. In buying his flat two decades ago, the lease term was of little concern. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Mason arranged for a lease extension at the eleventh hour in March. Mason and the freeholder via the management company in the end settled on sum of £5,000 . If he not met the deadline, the amount would have increased by at least £1,075.
Last Spring we were phoned by Dr Lily Kelly , who was assigned a lease of a one bedroom apartment in Finsbury Park in November 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative residencies in Finsbury Park with a long lease were valued about £225,800. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish on 14 September 2085. Having 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus legals.
An example of a Freehold Enfranchisement decision for a Finsbury Park residence 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.