Kilburn leases on domestic deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Kilburn will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The conveyancers that we work with undertake Kilburn 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 lawyer we work with provide it.
Following protracted negotiations with the freeholder of her purpose-built flat in Kilburn, Catherine commenced the lease extension process as the 80 year mark was swiftly coming. The transaction was concluded in July 2005. The landlord’s fees were negotiated to approximately 500 pounds.
Last February we were approach by Ms S Rivera , who completed a first floor flat in Kilburn in April 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Kilburn with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 billed monthly. The lease came to a finish on 17 March 2078. Having 53 years left we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
An example of a Freehold Enfranchisement case for a Kilburn property is 4 & 4A Charteris Road in June 2009. the Tribunal held that the price to be paid for the enfranchisement of 4/4a Charteris Road to be £15,510 for at 4and £15,694 for at 4a This case related to 2 flats. The unexpired lease term was 70.02 years.