It’s an underpublicised certainty that a Carbis Bay residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Carbis Bay property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Carbis Bay will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately 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 in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Carbis Bay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Luke was the the leasehold owner of a high value apartment in Carbis Bay on the market with a lease of fraction over fifty eight years remaining. Luke on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Luke to exercise his statutory right. Luke obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Dr U Rogers was assigned a lease of a basement flat in Carbis Bay in July 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative flats in Carbis Bay with a long lease were valued around £227,800. The average ground rent payable was £45 collected yearly. The lease ended on 27 October 2091. Having 65 years outstanding we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Mr and Mrs. M Rivera acquired a purpose-built flat in Carbis Bay in August 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Carbis Bay with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expired in 2102. Having 76 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.