There is no doubt about it a leasehold property in Kilburn Park is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years to run then this decrease may be fractional however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. The majority of flat owners in Kilburn Park will qualify for this right; however a lawyer will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Kilburn Park with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Kilburn Park,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kilburn Park valuers.
Following unsuccessful correspondence with the landlord of her garden flat in Kilburn Park, Laura commenced the lease extension process as the eighty year threshold was quickly approaching. The lease extension was concluded in November 2012. The landlord’s costs were negotiated to below 600 GBP.
Mr Milo Lambert owned a one bedroom flat in Kilburn Park in October 2000. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Kilburn Park with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 billed annually. The lease termination date was in 2105. Considering the 79 years remaining we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.
An example of a Freehold Enfranchisement case for a Kilburn Park 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 affected 2 flats. The unexpired term as at the valuation date was 70.02 years.