As the the remaining lease term of a East Croydon residential lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in East Croydon will qualify for this right; that being said a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in East Croydon with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your East Croydon leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Benjamin, came precariously near to the eighty-year mark with the lease on his ground floor flat in East Croydon. In buying his home 19 years previously, the lease term was of little relevance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Benjamin arranged for a lease extension just under the wire last July. Benjamin and the landlord who owned the flat above eventually settled on sum of £6,000 . If he failed to meet the deadline, the figure would have become more exhorbitant by a minimum £875.
Mr M Martinez was assigned a lease of a recently refurbished apartment in East Croydon in August 2003. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative premises in East Croydon with 100 year plus lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished on 27 July 2077. Taking into account 52 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a East 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.