The market value of Kilburn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Freddie was the the leasehold proprietor of a conversion apartment in Kilburn being sold with a lease of just over 72 years left. Freddie informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last August we were contacted by Mrs Mollie Murphy , who completed a one bedroom flat in Kilburn in January 2012. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical properties in Kilburn with 100 year plus lease were valued about £181,600. The average ground rent payable was £55 billed annually. The lease came to a finish in 2077. Considering the 52 years remaining we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Kilburn premises 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 affected 2 flats. The remaining number of years on the lease was 70.02 years.