Rye leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Leasehold owners in Rye will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately 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 |
|---|---|
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| 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. |
Lease extensions in Rye can be a difficult process. We recommend you get professional help from a conveyancer and valuer 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.
Two years ago Jack, came critically near to the 80-year mark with the lease on his leasehold apartment in Rye. Having bought his property 19 years ago, the lease term was of little interest. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Jack extended the lease at the eleventh hour in May. Jack and the freeholder via the managing agents eventually settled on sum of £5,000 . If the lease had dropped to less than 80 years, the premium would have gone up by at least £975.
In 2011 we were approached by Mr and Mrs. L Howard who, having was assigned a lease of a one bedroom flat in Rye in May 2004. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Identical premises in Rye with 100 year plus lease were in the region of £171,800. The average amount of ground rent was £55 invoiced per annum. The lease termination date was on 24 April 2076. Given that there were 50 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of expenses.
In 2009 we were phoned by Mr R Walker who, having completed a studio flat in Rye in March 2002. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Rye with a long lease were in the region of £280,000. The average ground rent payable was £45 invoiced per annum. The lease lapsed on 18 November 2096. Taking into account 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.