When it comes to residential leasehold property in Carbis Bay, you are actually purchasing a right to live 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 lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Anyone in Carbis Bay with a lease approaching 81 years remaining should seriously think of extending it sooner than later. When a lease has fewer than 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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; |
| 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. |
| Coventry Building Society | 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. |
Lease extensions in Carbis Bay can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Carbis Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the freeholder of her garden apartment in Carbis Bay, Amber commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The legal work was concluded in September 2012. The freeholder’s costs were kept to an absolute minimum.
Last Winter we were called by Mr and Mrs. G Gómez , who moved into a ground floor flat in Carbis Bay in February 1997. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative premises in Carbis Bay with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 collected yearly. The lease end date was in 2083. Having 57 years remaining we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.
Mrs Caitlin Scott completed a one bedroom flat in Carbis Bay in April 1998. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable homes in Carbis Bay with 100 year plus lease were worth £245,000. The average ground rent payable was £50 collected quarterly. The lease finished on 24 May 2094. Given that there were 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.