When it comes to domestic leasehold premises in Finsbury Park, you effectively rent it for a certain amount 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 may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years remaining. Anyone in Finsbury Park with a lease drawing near to 81 years left should seriously think of extending it without delay. When the lease term has less than 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
Off the back of unsuccessful discussions with the landlord of her basement apartment in Finsbury Park, Courtney started the lease extension process as the eighty year mark was swiftly approaching. The lease extension was finalised in August 2011. The landlord’s costs were negotiated to under 500 pounds.
In 2014 we were called by Dr M Díaz who, having completed a basement flat in Finsbury Park in August 2005. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical residencies in Finsbury Park with 100 year plus lease were worth £208,600. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish on 10 February 2083. Having 57 years outstanding we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
An example of a Freehold Enfranchisement decision 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 was in relation to 1 flat. The unexpired lease term was 71 years.