It’s a harsh truth that a Carbis Bay residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Carbis Bay property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Carbis Bay will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Carbis Bay,the lease extension solicitors 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 Carbis Bay valuers.
During the course of the last few months Joshua, started to get close to the 80-year mark with the lease on his ground floor apartment in Carbis Bay. Having purchased his property 19 years previously, the length of the lease was of minimal concern. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Joshua was able to extend his lease just under the wire last July. Joshua and the freeholder via the managing agents subsequently settled on sum of £5,000 . If the lease had dropped below 80 years, the price would have escalated by at least £1,025.
Mr and Mrs. K Petit purchased a purpose-built apartment in Carbis Bay in March 1996. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative residencies in Carbis Bay with an extended lease were valued around £173,800. The average ground rent payable was £60 collected quarterly. The lease finished on 19 January 2081. Given that there were 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.
Ms Stephanie Laurent owned a purpose-built apartment in Carbis Bay in August 2006. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Carbis Bay with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced every twelve months. The lease expiry date was in 2092. Given that there were 66 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.