Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Kilburn. Inevitably, the length of lease left reduces over time. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Kilburn have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Do give due attention before delaying your Kilburn lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Kilburn with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Kilburn leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Luca, came critically near to the eighty-year mark with the lease on his first floor flat in Kilburn. Having purchased his property 18 years ago, the length of the lease was of little significance. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. Luca arranged for a lease extension just ahead of time last June. Luca and the landlord who owned the flat above in the end settled on an amount of £5,000 . If he had missed the deadline, the figure would have escalated by at least £1,000.
Last Summer we were approach by Dr P Cooper , who acquired a studio apartment in Kilburn in August 2000. The question was if we could estimate the price could be to extend the lease by a further 90 years. Identical premises in Kilburn with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease lapsed in 2094. Having 69 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Kilburn flat 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 was in relation to 2 flats. The unexpired term was 70.02 years.