For those whose Croydon property is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Croydon can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Croydon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Callum owned a high value flat in Croydon being marketed with a lease of just over 72 years outstanding. Callum informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2013 we were e-mailed by Mr and Mrs. B Hill who, having moved into a basement apartment in Croydon in August 1999. The question was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparative premises in Croydon with a long lease were in the region of £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease concluded in 2087. Having 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including professional charges.
An example of a Freehold Enfranchisement decision for a Croydon premises 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.