It’s a harsh certainty that a Rye residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Rye property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Rye will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Rye with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Rye,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rye valuers.
Off the back of protracted discussions with the landlord of her leasehold apartment in Rye, Catherine commenced the lease extension process just as her lease was approaching the all-important 80-year mark. The transaction completed in March 2011. The landlord’s fees were negotiated to a tad over 550 GBP.
Last year we were e-mailed by Mrs Madeleine Carter , who owned a purpose-built apartment in Rye in February 2001. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative properties in Rye with an extended lease were worth £191,400. The mid-range ground rent payable was £55 billed annually. The lease concluded in 2080. Considering the 54 years as a residual term we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of costs.
Dr C Lefèvre purchased a one bedroom flat in Rye in January 2007. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative properties in Rye with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 collected every twelve months. The lease termination date was on 23 March 2100. Having 74 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.