For those whose Carbis Bay property is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold properties in Carbis Bay with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Carbis Bay,the lease extension experts 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.
Subsequent to lengthy discussions with the landlord of her garden apartment in Carbis Bay, Melissa initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was concluded in May 2013. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were approached by Dr T Morgan who, having completed a first floor apartment in Carbis Bay in August 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable homes in Carbis Bay with 100 year plus lease were valued around £191,000. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out on 19 November 2084. Considering the 58 years unexpired we estimated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus legals.
Ms K Moore bought a newly refurbished flat in Carbis Bay in July 2005. The dilemma was if we could approximate the price would be for a 90 year lease extension. Identical premises in Carbis Bay with an extended lease were worth £250,000. The average ground rent payable was £50 invoiced per annum. The lease expired in 2095. Taking into account 69 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.