Carbis Bay leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Carbis Bay tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Carbis Bay you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Carbis Bay with over one hundred years outstanding on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Carbis Bay leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Callum owned a studio apartment in Carbis Bay on the market with a lease of a little over fifty eight years unexpired. Callum informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Callum to invoke his statutory right. Callum procured expert advice and secured satisfactory deal informally and readily saleable.
In 2014 we were contacted by Mr Y Khan who, having owned a first floor apartment in Carbis Bay in February 2004. We are asked if we could approximate the price would be to extend the lease by 90 years. Identical homes in Carbis Bay with an extended lease were in the region of £285,000. The average ground rent payable was £55 invoiced every twelve months. The lease ended on 27 August 2104. Taking into account 79 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Mr and Mrs. O Michel owned a recently refurbished flat in Carbis Bay in October 2002. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar homes in Carbis Bay with a long lease were in the region of £193,400. The average ground rent payable was £65 collected annually. The lease ended on 28 August 2084. Given that there were 59 years unexpired we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.