Rye leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Flat owners in Rye will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
The lawyers that we work with undertake Rye 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 conveyancer we work with provide it.
After unsuccessful correspondence with the freeholder of her two bedroom flat in Rye, Amelia initiated the lease extension process as the eighty year deadline was rapidly nearing. The transaction completed in April 2012. The landlord’s charges were negotiated to less than five hundred pounds.
In 2014 we were called by Ms R Jackson who, having acquired a first floor flat in Rye in March 2004. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar homes in Rye with an extended lease were valued around £181,600. The average amount of ground rent was £55 collected annually. The lease terminated on 20 February 2078. Given that there were 52 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of fees.
Mr and Mrs. U Díaz was assigned a lease of a basement flat in Rye in February 2012. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparable homes in Rye with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 invoiced yearly. The lease came to a finish on 20 July 2098. Considering the 72 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.