With a long leasehold premises in Kilburn Park, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Kilburn Park with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has under eighty years left, under the relevant Act the freeholder can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Kilburn Park with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Kilburn Park 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.
Subsequent to protracted correspondence with the landlord of her purpose-built flat in Kilburn Park, Tia initiated the lease extension process just as the lease was approaching the critical eighty-year mark. The transaction was finalised in January 2005. The freeholder’s costs were kept to an absolute minimum.
Last month we were contacted by Ms A Sharif , who completed a basement apartment in Kilburn Park in June 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Similar flats in Kilburn Park with 100 year plus lease were worth £173,800. The mid-range ground rent payable was £65 billed yearly. The lease ended in 2080. Having 55 years outstanding we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.
An example of a Freehold Enfranchisement decision 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 was in relation to 2 flats. The number of years remaining on the existing lease(s) was 70.02 years.