The market value of West Croydon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold properties in West Croydon with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 West Croydon leasehold, as your property will be more valuable and saleable in terms of 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.
Ibrahim owned a studio flat in West Croydon on the market with a lease of a little over 61 years unexpired. Ibrahim on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
Mr and Mrs. P Wright bought a purpose-built apartment in West Croydon in February 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar properties in West Croydon with an extended lease were in the region of £235,200. The average ground rent payable was £45 billed annually. The lease termination date was in 2092. Having 66 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a West 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 related to 4 flats. The unexpired term was 98 years.