Why you should start your Croydon lease extension
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Why you should commence your Croydon lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/croydon">Croydon</a> leasehold property depreciates with the years remaining on the lease.
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<p> Chances are that where you own a flat in Croydon you actually own a long leasehold interest over your property
<h4>An extended lease is almost the same value as a freehold</h4>
<p> It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
<h4>Banks and Building Societies may decide not to issue a mortgage on a short lease</h4>
The trend since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has meant the unexpired lease term required by banks has increased. In the past mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</td>
<td> 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Chelsea Building Society</td>
<td> 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage.
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<h4>
What makes us experts in Croydon lease extensions?
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The conveyancing solicitors that we work with handle Croydon 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 lawyer we work with provide it.
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Croydon Lease Extension Case Summaries:
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<h5> Alice, Croydon, South London,</h5>
<p> Subsequent to protracted negotiations with the landlord of her first floor apartment in Croydon, Alice initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The legal work was concluded in March 2007. The freeholder’s costs were kept to an absolute minimum.
<h5>Croydon case:</h5>
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Last month we were called by Mr and Mrs. V Lefèvre , who
moved into a one bedroom flat in Croydon in July 2006. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable homes in Croydon with an extended lease were in the region of £223,400. The average amount of ground rent was £60 invoiced yearly. The lease terminated in 2085. Having 59 years unexpired we calculated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 plus costs.
<div> <h5>Decision in Croydon</h5>
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An example of a Freehold Enfranchisement decision for a Croydon property is
29 Woodstock Road in April 2014. the Tribunal determined that the premiums to be paid into court in respect of the purchase of the freehold registered at HMLR under Title N0.SY3997 should be £7,217.
This case affected 4 flats. The unexpired term as at the valuation date was 98 years.
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