Main reasons to commence your Croydon lease extension

Top reasons for lease extension now:

A Croydon lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Croydon is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that all matters can be addressed prior to the 80 year mark. Statute enables Croydon qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to grant a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to get nervous at around 75 years. This will cause difficulties as and when you need to sell or remortgage your flat as it will be effectively unmortgageable. You might have no imminent desire to sell but when you do your buyer will need to wait 2 years before being able to initiate the legal procedures for an extension to the lease.

What makes us experts in Croydon lease extensions?

Lease extensions in Croydon can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.

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 Croydon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Croydon Lease Extension Example Cases:

Dylan, Croydon, South London,

Dylan owned a 2 bedroom apartment in Croydon being sold with a lease of fraction over 59 years remaining. Dylan on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.

Croydon case:

Mrs J Phillips moved into a garden flat in Croydon in March 1998. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Similar properties in Croydon with an extended lease were in the region of £189,000. The average ground rent payable was £55 billed every twelve months. The lease ran out on 11 February 2079. Having 53 years left we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.