By extending our previous isobar model to the K^0Lambda isospin channel we investigate the properties of the K^0Lambda photo- and electroproduction at energies near threshold. It is found that the pseudovector (PV) coupling yields significantly larger cross section. Variation of the K_1 coupling constants has significant effect only on the PV model. The electromagnetic form factor of the neutral kaon K^0 is found to have a sizable effect on the longitudinal cross section of the K^0Lambda electroproduction near the threshold.