Main reasons to commence your Croydon lease extension

Main reasons to start your Croydon lease extension today:

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

Croydon leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Croydon residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Croydon you should investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Croydon flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay

Croydon property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders will not lend with a short lease

Lenders are really restricting their approach as regards to properties in Croydon with short leases. For example you may find that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your only options would be to find a cash buyer, or try your luck at auction thus restricting your market.

What makes us experts in Croydon lease extensions?

The conveyancers that we work with undertake 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.

Croydon Lease Extension Case Studies:

Natasha, Croydon, South London,

In the wake of 6 months of protracted negotiations with the freeholder of her leasehold apartment in Croydon, Natasha commenced the lease extension process as the eighty year mark was fast nearing. The legal work was finalised in May 2012. The freeholder’s costs were negotiated to less than 450 GBP.

Croydon case:

Dr Nathan Allen completed a one bedroom flat in Croydon in May 1999. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Croydon with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 billed yearly. The lease finished on 19 August 2106. Considering the 80 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.