Why you should commence your Rye lease extension

Main reasons to 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 the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Rye residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Rye you should investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Rye leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

Leasehold premises in Rye with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not lend on a short lease

Banks and Building Societies have set criteria when loaning funds secured on leasehold property. Many will simply refrain from lending at all once the residual lease term drops beneath a certain unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below seventy years suitable security. As well as this being important when selling, it is also relevant if you are wanting to refinance your Rye property.

What makes us experts in Rye lease extensions?

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.

Rye Lease Extension Case Summaries:

Leon, Rye, East Sussex,

Leon owned a studio flat in Rye on the market with a lease of a few days over 72 years unexpired. Leon informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.

Rye case:

Last month we were contacted by Mrs D Brooks , who took over the lease of a ground floor apartment in Rye in January 2006. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar residencies in Rye with a long lease were in the region of £300,000. The average ground rent payable was £50 invoiced yearly. The lease ran out in 2102. Having 76 years unexpired we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.

Rye case:

Mrs A Bertrand acquired a one bedroom flat in Rye in November 2008. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical homes in Rye with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 invoiced quarterly. The lease came to a finish on 20 March 2091. Given that there were 65 years outstanding we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of fees.