The re-sale value of a leasehold property in West Croydon is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded ahead of the eighty year mark. Leasehold Reform legislation entitles West Croydon qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in West Croydon with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancing solicitors that we work with undertake West Croydon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Jackson, started to get near to the 80-year threshold with the lease on his purpose- built flat in West Croydon. In buying his property 18 years ago, the length of the lease was of minimal bearing. Thankfully, he noticed he needed to take action soon on Extending the lease. Jackson arranged for a lease extension just in the nick of time in September. Jackson and the freeholder subsequently settled on an amount of £5,000 . If he had missed the deadline, the amount would have gone up by a minimum £900.
Last month we were called by Mr and Mrs. P Fournier , who owned a first floor flat in West Croydon in June 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable flats in West Croydon with 100 year plus lease were worth £193,400. The average ground rent payable was £65 invoiced yearly. The lease expired on 3 October 2085. Given that there were 59 years unexpired we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a West 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 related to 4 flats. The unexpired term as at the valuation date was 98 years.