The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Carbis Bay have the legal entitlement to extend the lease for a further 90 years under legislation. Do give careful consideration before delaying your Carbis Bay lease extension. Postponing that expense now simply escalates the amount you will eventually be required to pay for a lease extension.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with procure 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.
In recent months Seth, started to get near to the 80-year threshold with the lease on his garden apartment in Carbis Bay. In buying his home twenty years previously, the length of the lease was of no significance. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Seth extended the lease just under the wire in May. Seth and the freeholder via the management company in the end agreed on sum of £6,000 . If he not met the deadline, the figure would have become more costly by a minimum £1,100.
In 2014 we were approached by Dr C Gunderson who, having was assigned a lease of a studio flat in Carbis Bay in June 2010. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable flats in Carbis Bay with a long lease were worth £280,000. The average amount of ground rent was £55 collected quarterly. The lease expired on 22 February 2102. Given that there were 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
In 2013 we were approached by Mr and Mrs. A Alexander who, having acquired a newly refurbished apartment in Carbis Bay in June 2009. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar properties in Carbis Bay with an extended lease were valued around £183,600. The average ground rent payable was £65 collected every twelve months. The lease terminated on 10 March 2082. Given that there were 57 years unexpired we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.