Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Rye. Clearly, the length of lease left reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Rye have the right to extend the lease for a further 90 years under legislation. Do give due attention before putting off your Rye lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Rye with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Rye lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the landlord of her leasehold flat in Rye, Madeleine initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work completed in April 2009. The freeholder’s charges were restricted to under four hundred pounds.
Mr and Mrs. T Gómez moved into a basement flat in Rye in July 2001. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Similar flats in Rye with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished in 2103. Given that there were 78 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
In 2014 we were contacted by Dr Omar Martinez who, having owned a studio apartment in Rye in February 2000. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Rye with 100 year plus lease were valued around £267,600. The mid-range ground rent payable was £65 collected quarterly. The lease expiry date was in 2092. Taking into account 67 years remaining we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 not including fees.