When it comes to residential leasehold property in Carbis Bay, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are fewer than 80 years remaining. Anyone in Carbis Bay with a lease approaching 81 years left should seriously think of extending it without delay. When the lease term has under eighty years remaining, under the current Act the freeholder can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The conveyancing solicitors 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 lawyer we work with provide it.
Two years ago Tyler, started to get close to the eighty-year mark with the lease on his two bedroom flat in Carbis Bay. In buying his flat two decades ago, the lease term was of no bearing. Fortunately, he realised he needed to take steps soon on Extending the lease. Tyler was able to extend his lease just ahead of time last April. Tyler and the landlord subsequently agreed on an amount of £6,000 . If the lease had gone to less than eighty years, the figure would have become more exhorbitant by a minimum £1,025.
In 2012 we were called by Mr and Mrs. V Ali who, having completed a studio apartment in Carbis Bay in July 2009. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative flats in Carbis Bay with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease came to a finish in 2082. Having 57 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.
In 2010 we were contacted by Mr and Mrs. P Bernard who, having took over the lease of a ground floor flat in Carbis Bay in April 2001. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable homes in Carbis Bay with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 billed annually. The lease finished in 2093. Taking into account 68 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.