The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Kilburn Park have the legal entitlement to extend the lease for a further ninety years under legislation. Please give careful consideration before delaying your Kilburn Park lease extension. Shelving that expense now simply increases the premium you will eventually have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
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 conveyancing solicitor we work with provide it.
Lucas was the the leasehold proprietor of a high value flat in Kilburn Park being sold with a lease of a few days over sixty years outstanding. Lucas on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
Last Christmas we were contacted by Dr E Morris , who moved into a ground floor apartment in Kilburn Park in January 2012. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative properties in Kilburn Park with a long lease were valued around £270,000. The mid-range ground rent payable was £55 collected annually. The lease expired in 2099. Considering the 74 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Kilburn Park residence 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 lease term was 70.02 years.