East Croydon leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in East Croydon enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in East Croydon you should see if your lease has between seventy and 90 years left. There are good reasons why a East Croydon leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
Leasehold residencies in East Croydon with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your East Croydon leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her first floor flat in East Croydon, Rosie started the lease extension process as the eighty year mark was rapidly nearing. The transaction completed in June 2008. The landlord’s fees were kept to an absolute minimum.
Mr C Ricardo moved into a one bedroom flat in East Croydon in March 2012. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in East Croydon with 100 year plus lease were in the region of £218,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease ended in 2084. Considering the 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 plus legals.
An example of a Freehold Enfranchisement decision for a East 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 unexpired lease term was 98 years.