It’s a harsh truth that a Great Yarmouth residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Great Yarmouth property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Great Yarmouth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Skipton Building Society |
The lawyers that we work with procure Great Yarmouth 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 conveyancing solicitor we work with provide it.
Last year Callum, came seriously close to the eighty-year mark with the lease on his first floor apartment in Great Yarmouth. Having bought his flat two decades ago, the unexpired term was of no importance. Thankfully, he realised he needed to take steps soon on a lease extension. Callum arranged for a lease extension just ahead of time last August. Callum and the freeholder subsequently agreed on sum of £5,500 . If he had missed the deadline, the price would have gone up by at least £850.
Dr K Girard moved into a studio flat in Great Yarmouth in October 2000. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical premises in Great Yarmouth with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 billed per annum. The lease end date was on 9 July 2094. Taking into account 68 years outstanding we approximated the premium to the landlord to extend the lease to be between £10,500 and £12,000 plus fees.
In 2010 we were contacted by Dr B Brooks who, having owned a newly refurbished flat in Great Yarmouth in February 2010. We are asked if we could estimate the price could be to prolong the lease by ninety years. Similar premises in Great Yarmouth with an extended lease were worth £285,000. The average ground rent payable was £55 billed quarterly. The lease ended in 2105. Considering the 79 years unexpired we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.