Carbis Bay leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Flat owners in Carbis Bay will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some cases you may not be entitled. There are also strict timetables and steps to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Carbis Bay with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at 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. |
Retaining our service will provide you better 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 want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jasper, came very near to the 80-year mark with the lease on his purpose- built apartment in Carbis Bay. Having purchased his property two decades ago, the lease term was of no bearing. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Jasper extended the lease at the eleventh hour in January. Jasper and the freeholder ultimately settled on sum of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £1,150.
Last Spring we were e-mailed by Mr and Mrs. N Lefebvre , who acquired a one bedroom flat in Carbis Bay in August 1996. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparative flats in Carbis Bay with 100 year plus lease were valued about £208,200. The average ground rent payable was £65 billed quarterly. The lease lapsed in 2087. Considering the 61 years remaining we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of legals.
Last Summer we were approach by Mr and Mrs. Y Roberts , who bought a studio flat in Carbis Bay in February 2003. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Carbis Bay with an extended lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded on 4 February 2098. Having 72 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.