Top reasons for Croydon lease extension

Top reasons for lease extension now:

Increase your lease and increase your Croydon property value

Croydon leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Croydon will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Croydon with in excess of one hundred years outstanding 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 buying the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to lend with a short lease

Lenders do not like short residential leases. You are likely to encounter difficulties if you wish to sell your flat in Croydon if the unexpired lease term is less than the criteria set by most banks and building societies. Different mortgage companies have varying criteria but in the main theyrequire a minimum remaining lease term of seventy years.

Why use us for your lease extension in Croydon?

Irrespective of whether you are a tenant or a freeholder in Croydon,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Croydon valuers.

Croydon Lease Extension Case Studies:

Oliver, Croydon, South London,

Oliver owned a 2 bedroom apartment in Croydon on the market with a lease of just over 72 years remaining. Oliver informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.

Croydon case:

Last Winter we were approach by Mr and Mrs. Y Adams , who was assigned a lease of a ground floor apartment in Croydon in June 2009. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparable flats in Croydon with an extended lease were valued around £208,600. The average ground rent payable was £60 billed per annum. The lease ran out in 2083. Taking into account 57 years unexpired we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.