The re-sale value of a leasehold property in Carbis Bay depends on how long the lease has remaining. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded well before the eighty year threshold. Leasehold Reform legislation entitles Carbis Bay qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Carbis Bay with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
Retaining our service will provide you increased control over the value of your Carbis Bay leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Ali, came dangerously near to the 80-year mark with the lease on his basement apartment in Carbis Bay. Having purchased his property 19 years ago, the length of the lease was of no significance. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Ali arranged for a lease extension just under the wire in January. Ali and the landlord ultimately settled on a premium of £5,500 . If the lease had slid to less than 80 years, the amount would have increased by at least £1,100.
In 2009 we were e-mailed by Mr and Mrs. O Torres who, having was assigned a lease of a one bedroom apartment in Carbis Bay in January 2004. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical flats in Carbis Bay with 100 year plus lease were valued about £176,200. The average ground rent payable was £65 invoiced quarterly. The lease end date was in 2081. Taking into account 56 years remaining we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus costs.
Last Winter we were called by Mr and Mrs. V Moore , who acquired a purpose-built apartment in Carbis Bay in August 2012. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Identical premises in Carbis Bay with 100 year plus lease were valued about £242,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished in 2092. Taking into account 67 years outstanding we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of legals.