Stop! Your Lease Extension in Croydon Could Be FREE

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Many leaseholders in Croydon are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Croydon has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should start your Croydon lease extension

Why you should commence your Croydon lease extension today:

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

Chances are that where you own a flat in Croydon you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

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.

Banks and Building Societies may decide not to issue a mortgage on a short lease

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.

Lender Requirement
Accord Mortgages 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.
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Chelsea Building Society 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.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.

What makes us experts in Croydon lease extensions?

Irrespective of whether you are a tenant or a landlord in Croydon,the lease extension lawyers that we work with will always be willing 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 Example Cases:

Jacob, Croydon, South London

In 2014 Jacob, came perilously near to the 80-year mark with the lease on his ground floor flat in Croydon. In buying his home two decades ago, the length of the lease was of no concern. by good luck, he became aware that he needed to take steps soon on Extending the lease. Jacob arranged for a lease extension just ahead of time in May. Jacob and the freeholder via the managing agents in the end agreed on a premium of £5,500 . If he not met the deadline, the sum would have escalated by at least £1,150.

Croydon case:

In 2011 we were e-mailed by Mrs Naomi André who, having was assigned a lease of a first floor apartment in Croydon in January 1997. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable premises in Croydon with 100 year plus lease were in the region of £223,400. The average ground rent payable was £60 invoiced quarterly. The lease terminated on 18 January 2085. Given that there were 59 years left we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of costs.

Decision in Croydon

An example of a Freehold Enfranchisement matter before the tribunal 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 was in relation to 4 flats. The unexpired lease term was 98 years.