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.

Rye leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Rye tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Rye you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions will not finance a property on a short lease

Many mortgage lenders insist on a lengthy amount of time left on a leasehold property before they will contemplate lending on it. Even if you don't require a mortgage, you should be mindful that it is likely that someone wishing to buy your property in the future might well do, so where they can't get a mortgage, then the market price of the property will likely suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are prepared to accept

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

The conveyancing solicitors that we work with procure Rye lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Rye Lease Extension Case Studies:

Katie, Rye, East Sussex,

Trailing lengthy correspondence with the landlord of her two bedroom apartment in Rye, Katie started the lease extension process as the 80 year threshold was rapidly coming. The transaction was concluded in July 2015. The freeholder’s charges were kept to an absolute minimum.

Rye case:

Last month we were contacted by Mr Luca Simon , who took over the lease of a one bedroom apartment in Rye in February 2000. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical properties in Rye with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ran out in 2098. Taking into account 72 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.

Rye case:

In 2014 we were called by Dr C Fournier who, having moved into a first floor apartment in Rye in March 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Rye with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 invoiced every twelve months. The lease concluded on 22 April 2087. Given that there were 61 years remaining we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of legals.