The only way is down when it comes to Carbis Bay lease terms. Carbis Bay leaseholds that have a lease term less than than eighty years will reduce in market price even faster, and the cost of extending your lease will rise.
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake 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.
George was the the leasehold owner of a 2 bedroom apartment in Carbis Bay being sold with a lease of a few days over 61 years outstanding. George on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were George to invoke his statutory right. George procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were called by Mr Evan Reed who, having acquired a purpose-built apartment in Carbis Bay in March 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar flats in Carbis Bay with 100 year plus lease were valued about £270,000. The average ground rent payable was £55 invoiced yearly. The lease ended on 4 May 2099. Taking into account 74 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2014 we were called by Ms Charlotte Khan who, having took over the lease of a ground floor flat in Carbis Bay in July 2011. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Identical residencies in Carbis Bay with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 billed quarterly. The lease expired on 20 May 2079. Considering the 54 years as a residual term we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.