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 decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Rye residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Rye you should check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

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

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not grant a mortgage with a short lease

Almost all banks and building societies insist on a lengthy amount of time remaining on any leasehold residence before they will contemplate providing a mortgage on it. Even if you don't need a mortgage, you should bear in mind that it is likely that someone intending to buy your property in the future might well do, so where they can't get a mortgage, then the financial worth of the property will likely suffer. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to accept

Why use us for your lease extension in Rye?

Using our service will provide you increased control over the value of your Rye leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Rye Lease Extension Case Summaries:

Logan, Rye, East Sussex

Last year Logan, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Rye. Having bought his property two decades ago, the unexpired term was of no relevance. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Logan was able to extend his lease just under the wire last April. Logan and the freeholder via the management company ultimately settled on sum of £6,000 . If the lease had slipped lower than 80 years, the amount would have increased by a minimum £950.

Rye case:

In 2014 we were approached by Mrs Molly David who, having was assigned a lease of a one bedroom apartment in Rye in November 2007. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical homes in Rye with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease came to a finish on 23 June 2106. Taking into account 80 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.

Rye case:

Last month we were called by Mrs P Roberts , who was assigned a lease of a ground floor flat in Rye in October 1995. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Identical premises in Rye with an extended lease were valued around £275,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed on 8 July 2095. Considering the 69 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.