Hythe leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Hythe will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Hythe with over 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Hythe 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.
In the wake of 9 months of protracted discussions with the freeholder of her basement flat in Hythe, Lily started the lease extension process just as the lease was approaching the crucial 80-year threshold. The legal work completed in January 2010. The freeholder’s costs were kept to an absolute minimum.
Ms E Cooper bought a studio apartment in Hythe in July 2003. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Hythe with a long lease were valued about £295,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ended in 2100. Having 75 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Last Winter we were approach by Ms C Richardson , who took over the lease of a studio flat in Hythe in October 1996. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable properties in Hythe with an extended lease were in the region of £250,400. The average ground rent payable was £65 collected every twelve months. The lease finished on 1 August 2089. Having 64 years left we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.