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 escalate substantially once the remaining term is less than 80 years
Leasehold residencies in Rye with more than one hundred 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank |
Retaining our service will provide you enhanced control over the value of your Rye leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her garden apartment in Rye, Sarah initiated the lease extension process just as her lease was approaching the critical 80-year threshold. The legal work was concluded in August 2007. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were contacted by Mr and Mrs. W Bernard , who took over the lease of a first floor flat in Rye in March 2011. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable residencies in Rye with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed in 2095. Taking into account 69 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
In 2010 we were contacted by Dr Jacob Robinson who, having acquired a basement flat in Rye in October 2004. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Similar homes in Rye with a long lease were valued around £216,000. The mid-range ground rent payable was £60 billed per annum. The lease terminated in 2084. Given that there were 58 years left we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.