When it comes to long leasehold premises in Kilburn Park, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years remaining. Leasehold owners in Kilburn Park with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has under eighty years left, under the current statute the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Kilburn Park,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kilburn Park valuers.
Last October Hugo, came seriously close to the 80-year threshold with the lease on his ground floor apartment in Kilburn Park. Having bought his property two decades ago, the lease term was of minimal interest. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Hugo extended the lease at the eleventh hour in August. Hugo and the landlord eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,075.
Last year we were phoned by Mrs O Baker , who completed a recently refurbished apartment in Kilburn Park in May 2010. The question was if we could approximate the premium could be for a 90 year lease extension. Identical properties in Kilburn Park with 100 year plus lease were worth £215,600. The average ground rent payable was £45 collected quarterly. The lease expired on 15 April 2087. Taking into account 62 years remaining we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Kilburn Park 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 unexpired term was 70.02 years.