To Lease or Not to Lease (Lake Lots)

While the boating activity on the lakes has decreased, the interest in lake property is beginning to increase. When showing property, I frequently get the question, "What do you mean, a Leased Lot?" A good question indeed. After all, you are either looking for either a second home to use as a "get-away" during long weekends and holidays, or you are actually moving to the lake to fulfill a lifelong dream. You have saved long to own a piece of the lake, so why are we discussing leased lots? Here's the bottom line. Lakes Sinclair and Oconee are owned by the GA Power Company and exist for the purpose of electricity production. As such all property from full pool (the 340 feet above seal level) to the 350' contour line are controlled by GA Power. That doesn't mean that you can't use and enjoy property. On Ga Power lakes, you will find fee simple or fully owned lots, lots that are half leased/half owned, and fully leased lots. The amount of the lease is dependent on where improvements are placed on that property. Understandably, if nothing is built on the GA Power access area, the cost is minimal. Conversely, if your home is built on any part of the leased portion, the full lease amount is due. All leases are currently 15 years in duration. The lease amount increases every five years. The 2008 rates start with $900 (years 1-5), $1050 (6-10), and $1100 (11-15). A good real estate professional can identify which properties are deeded, totally leased or lease strip, and assist in determining which will provide the best benefits to you.

Hope this helps clear the muddy water a little. For a more detailed explanation, visit the site: http://call4chris.com/custom4.shtml. Additional information is available under the GA Power Land Management section.