Main reasons to commence your East Croydon lease extension

Main reasons to start your East Croydon lease extension today:

Increase your lease and increase your East Croydon property value

East Croydon leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher amount will be payable. Leasehold owners in East Croydon will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.

Lending institutions will not loan monies with a short lease

Lenders are really restricting their approach as regards to homes in East Croydon with short leases. For instance you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus limiting the number of prospective purchasers.

Get in touch with one of our East Croydon lease extension solicitors or enfranchisement solicitors

Engaging our service gives you enhanced control over the value of your East Croydon leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

East Croydon Lease Extension Case Studies:

Harvey, East Croydon, South London

Last year Harvey, came seriously near to the 80-year threshold with the lease on his basement flat in East Croydon. Having purchased his home twenty years previously, the lease term was of minimal significance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Harvey arranged for a lease extension just in the nick of time in September. Harvey and the landlord eventually settled on the final figure of £5,500 . If he had missed the deadline, the amount would have become more costly by a minimum £1,150.

East Croydon case:

Last Autumn we were called by Dr Riley Parker , who bought a studio apartment in East Croydon in January 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in East Croydon with an extended lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed on 16 February 2095. Considering the 69 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.