Rye leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Rye residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Rye you would be well advised to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Rye leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Rye with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Lease extensions in Rye can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 procuring Rye lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Milo, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Rye. In buying his home 18 years previously, the unexpired term was of minimal importance. Thankfully, he recognised he needed to take action soon on Extending the lease. Milo extended the lease at the eleventh hour last April. Milo and the landlord in the end agreed on the final figure of £5,500 . If he not met the deadline, the premium would have increased by a minimum £1,100.
In 2011 we were approached by Mr Jack Sharif who, having owned a one bedroom flat in Rye in September 1999. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Identical flats in Rye with a long lease were valued about £267,600. The average amount of ground rent was £65 collected quarterly. The lease came to a finish in 2093. Given that there were 67 years remaining we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of expenses.
Last month we were contacted by Mr and Mrs. I Allen , who took over the lease of a purpose-built apartment in Rye in June 2009. The question was if we could estimate the price could be to extend the lease by 90 years. Comparable premises in Rye with an extended lease were worth £206,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease ran out in 2082. Considering the 56 years unexpired we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.