Unfortunately 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 taken for granted in the early years due to the deflation being disguised by increases in the Great Yarmouth property prices.Once your lease nears 85ish years, you need to start thinking about 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 falls below eighty years - otherwise a higher amount will be due. Most leasehold owners in Great Yarmouth will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Great Yarmouth leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harrison was the the leasehold proprietor of a conversion apartment in Great Yarmouth being marketed with a lease of just over 61 years outstanding. Harrison on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and secured an acceptable deal informally and readily saleable.
Last Spring we were called by Dr Aaron Thomas , who completed a one bedroom flat in Great Yarmouth in April 1995. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Identical properties in Great Yarmouth with a long lease were valued around £237,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease expired on 20 May 2092. Given that there were 67 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including costs.
Last Summer we were called by Mr and Mrs. R Lefèvre , who took over the lease of a first floor flat in Great Yarmouth in February 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical flats in Great Yarmouth with an extended lease were in the region of £280,000. The average ground rent payable was £55 invoiced yearly. The lease terminated on 27 July 2103. Taking into account 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.