There is no doubt about it a leasehold property in Great Yarmouth is a wasting asset as a result of the shortening lease. If the residual term has, over 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Great Yarmouth will meet the qualifying criteria; that being said a conveyancing solicitor can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Great Yarmouth with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Great Yarmouth can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Great Yarmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Kian, started to get near to the 80-year mark with the lease on his leasehold apartment in Great Yarmouth. In buying his home two decades ago, the unexpired term was of no concern. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Kian arranged for a lease extension just under the wire in April. Kian and the landlord ultimately agreed on the final figure of £5,000 . If the lease had fallen lower than 80 years, the sum would have become more exhorbitant by at least £1,050.
In 2014 we were called by Mrs Isabelle Kelly who, having owned a one bedroom flat in Great Yarmouth in July 2009. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable flats in Great Yarmouth with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £60 billed per annum. The lease ended on 23 June 2106. Having 80 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.
Mr and Mrs. D Cooper was assigned a lease of a one bedroom apartment in Great Yarmouth in June 2008. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Great Yarmouth with an extended lease were in the region of £200,800. The average amount of ground rent was £65 billed per annum. The lease expiry date was in 2086. Given that there were 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of fees.