Main reasons to commence your Carbis Bay lease extension

Top reasons for lease extension now:

Increase your lease and increase your Carbis Bay property value

With a long leasehold property in Carbis Bay, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years left. Leasehold owners in Carbis Bay with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has below 80 years remaining, under the relevant statute the freeholder can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Carbis Bay with over one hundred years outstanding 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may decide not to grant a mortgage with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to get jittery at around 75 years. This may cause difficulties as and when you wish to dispose of or remortgage your flat as it will be practically unmortgageable. You may not have an immediate plan to sell but when you do your purchaser will have to hold off for 2 years before being able to exercise the right to a an extension to the lease.

What makes us experts in Carbis Bay lease extensions?

The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.

Carbis Bay Lease Extension Case Studies:

Robyn, Carbis Bay, Cornwall,

Off the back of protracted correspondence with the landlord of her first floor flat in Carbis Bay, Robyn started the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work completed in March 2010. The freeholder’s costs were kept to an absolute minimum.

Carbis Bay case:

Last Autumn we were approach by Mrs T Williams , who took over the lease of a one bedroom flat in Carbis Bay in September 1998. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative flats in Carbis Bay with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expired in 2095. Taking into account 69 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.

Carbis Bay case:

Mrs P Ali owned a studio flat in Carbis Bay in November 1996. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Similar premises in Carbis Bay with 100 year plus lease were worth £290,000. The average ground rent payable was £60 billed monthly. The lease elapsed on 17 March 2106. Considering the 80 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.