Croydon leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your 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. If you are a leasehold owner in Croydon you should see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Croydon flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Croydon,the lease extension experts that we work with will always be happy 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.
After protracted correspondence with the freeholder of her first floor apartment in Croydon, Melissa initiated the lease extension process as the 80 year mark was fast coming. The transaction completed in May 2012. The freeholder’s charges were negotiated to a tad over 550 pounds.
Mr and Mrs. S Martinez bought a purpose-built apartment in Croydon in June 2001. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable residencies in Croydon with 100 year plus lease were worth £206,200. The average amount of ground rent was £60 billed monthly. The lease terminated in 2082. Having 56 years remaining we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus legals.
An example of a Freehold Enfranchisement case for a Croydon residence 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 number of years remaining on the existing lease(s) was 98 years.