Unfortunately that a Rye residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Rye property market.Once your lease gets to 85ish years, 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 due. The majority of leasehold owners in Rye will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society |
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 in-depth market knowledge and the close ties they enjoy with Rye valuers.
Mason was the the leasehold owner of a 2 bedroom flat in Rye being sold with a lease of a few days over 59 years left. Mason on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr Emily Howard moved into a ground floor apartment in Rye in March 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Rye with an extended lease were valued about £208,600. The mid-range ground rent payable was £60 collected yearly. The lease concluded on 25 March 2083. Having 57 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.
Last March we were contacted by Mr and Mrs. H García , who acquired a one bedroom apartment in Rye in October 2006. The question was if we could estimate the premium would be to prolong the lease by 90 years. Identical flats in Rye with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ended on 18 October 2103. Taking into account 77 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.