Top reasons for Rye lease extension

Why you should start your Rye lease extension today:

A Rye lease depreciates with the years remaining on the lease.

The value of Rye leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is less than eighty years

An extended lease has roughly the same value as a freehold

Leasehold residencies in Rye with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lenders may decide not to finance a property with a short lease

Mortgage companies are tightening their criteria and a meaningful number now expect flats to have at least 60 if not 70 years remaining once the mortgage has expired. Given that a number of flats in Rye were built in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to get a mortgage.

Get in touch with one of our Rye lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Rye,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rye valuers.

Rye Lease Extension Case Studies:

Toby, Rye, East Sussex

Twenty four months ago Toby, started to get close to the eighty-year threshold with the lease on his studio apartment in Rye. Having bought his home two decades ago, the length of the lease was of no relevance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Toby arranged for a lease extension at the eleventh hour last March. Toby and the freeholder via the management company subsequently agreed on an amount of £6,000 . If he not met the deadline, the sum would have escalated by at least £1,150.

Rye case:

Last Winter we were e-mailed by Dr Sian Richardson , who bought a newly refurbished apartment in Rye in June 2010. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable flats in Rye with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 billed monthly. The lease came to a finish in 2087. Having 61 years remaining we approximated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of legals.

Rye case:

Last year we were phoned by Mr and Mrs. L Garcia , who moved into a one bedroom apartment in Rye in April 2011. The question was if we could approximate the premium could be to prolong the lease by an additional years. Comparative residencies in Rye with a long lease were valued around £171,800. The mid-range amount of ground rent was £55 billed yearly. The lease expired on 25 May 2076. Having 50 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.