Why you should commence your Ryde lease extension

Main reasons to start your Ryde lease extension today:

Increase your lease and increase your Ryde property value

When it comes to domestic leasehold property in Ryde, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years remaining. Leasehold owners in Ryde with a lease nearing 81 years left should seriously consider extending it sooner rather than later. When a lease has under eighty years left, under the relevant legislation the freeholder can calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.

Ryde property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Ryde with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may not grant a mortgage on a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically lenders would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Ryde?

Regardless of whether you are a tenant or a landlord in Ryde,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ryde valuers.

Ryde Lease Extension Case Studies:

Liam, Ryde, Isle Of Wight

During the course of the last few months Liam, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Ryde. In buying his flat 18 years previously, the unexpired term was of minimal relevance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Liam arranged for a lease extension just under the wire in January. Liam and the landlord subsequently agreed on a premium of £5,000 . If he not met the deadline, the amount would have increased by a minimum £1,100.

Ryde case:

In 2014 we were called by Dr L Roberts who, having acquired a ground floor flat in Ryde in October 2011. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable residencies in Ryde with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed on 19 April 2076. Considering the 50 years unexpired we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 plus costs.

Ryde case:

In 2011 we were e-mailed by Ms Zoe Ricardo who, having took over the lease of a one bedroom flat in Ryde in April 1995. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative premises in Ryde with 100 year plus lease were in the region of £203,200. The mid-range ground rent payable was £65 collected quarterly. The lease concluded in 2087. Given that there were 61 years unexpired we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus legals.