Croydon Lease Extensions

Living in Croydon:

The borough of Croydon is an ambitious financial, business and retail area in London with humble Medieval roots. The site appears in The Domesday Book of 1086 as ‘Croindene’, a small market town with a recorded population of only around 365 inhabitants.

In the present day, Croydon is a thriving borough and a primary base for London’s commuters. It offers a vibrant cultural scene, an exciting blend of rural Surrey landscapes, and a bustling business centre. This unique combination makes Croydon an appealing place for families, retirees and working professionals.

Many owners of flats and maisonettes in Croydon will require a lease extension. If this applies to your property, consult this handy LEC guide for information tailored to your area.

• Population of Croydon: Between the last two ONS censuses (held in 2011 and 2021), the population of Croydon increased by 7.5%, from 363,400 in 2011 to around 390,700 in 2021.
• Average Property Price: Data from Rightmove revealed that properties in Croydon had an overall average price of £453,613 over the last year. This figure was up by 4% from the previous year.
• Neighbourhoods in Croydon: Addiscombe, Broad Green and Selhurst, Coulsdon, Croydon, Crystal Palace and Upper Norwood, Kenley and Old Coulsdon, Norbury, Purley, Sanderstead, Selsdon, Shirley, South Croydon, South Norwood and Woodside, Thornton Heath, Waddon.
• Local Authority: The local authority of Croydon is Croydon Council.

Lease Extensions in Croydon:

If you’re a leaseholder in Croydon, you have a statutory right to extend your lease by an additional 90 years. You usually have the option to extend your lease either by the informal (voluntary) route or the formal (statutory) route.

The local authority, Croydon Council, acknowledges both routes as valid, provided that you have owned the property for at least two years. This information is cited on their website’s ‘Leaseholder Services’ section.

At The Lease Extension Company, we advise leaseholders to take the statutory route because it will give substantial protection under the Leasehold Reform, Housing and Urban Development Act 1993. This procedure begins with a solicitor serving a Section 42 Notice on your Freeholder.

The LEC will provide you with a skilled surveyor and an experienced solicitor to handle the legal work, negotiate the most affordable premiums, and secure the fairest terms for your property. See our past results by viewing our excellent record of case studies.

The Lease Extension Process

See below for an overview of a typical statutory lease extension.

• Eligibility Check
• Valuation
• Serving the Section 42 Notice
• Receipt of the Section 45 Counter Offer
• Negotiation
• Agreement of Terms
• Registration of your new lease

Please visit our ‘How Long Will My Lease Take?’ article for extra information about each step.

Serving the Section 42 Tenant’s Notice

Before your Section 42 notice is drafted, one of our firms of specialist chartered surveyors will value your property for the purpose of the lease extension and identify the likely ‘premium’ (the price of your lease extension) you will pay your freeholder.

Identifying Your Competent Landlord

Our specialist solicitors will also identify the ‘competent landlord’ whose interest in the property is long enough to grant your 90-year lease extension.

Sometimes, this will be the direct landlord or housing management to whom you pay your service charge or ground rent. However, the competent landlord is often the freeholder of the building.

The Leasehold Reform Housing and Urban Development Act 1993 requires leaseholders to serve a Tenant’s Notice (Section 42 notice) on the ‘competent landlord’.

The Section 42 notice commences the lease extension and must include specific legal information. This is a technical legal notice, and it must be correctly drafted and validated to ensure your lease extension is deemed valid.

At The Lease Extension Company, we work with specialist legal firms in this specific area of law, ensuring that your notice is drafted and reviewed by leading experts in this field. The Section 42 notice will be sent to you for approval before it is forwarded to the solicitors, who will serve the notice to the Freeholder on your behalf.

Key Freeholders in Croydon:

The most prominent freeholder in Croydon is Croydon Council. It has the most extensive borough housing stock in London, so it will likely be your competent landlord.

Local housing associations such as Croydon Churches Housing Association and shared ownership opportunities from Registered Providers such as L&Q Homes, Southern Housing and PA Housing are prominent in the borough. For some leaseholders, one of these names may act as your competent landlord.

It’s important to note that shared ownership leaseholders will only qualify for the statutory right to extend their lease if they have ‘staircased’ up to 100% ownership.

Finding Your Freeholder:

Your freeholder’s contact information is listed in your original lease document. If you do not have your lease document, you can request a copy from the HM Land Registry for a small fee. As a LEC client, we can arrange this on your behalf.

How Much Will Your Lease Extension Cost?

Lease extension premiums vary from property to property. The cost is based on individual factors, including the following:

• The value of your property.
• The amount of ground rent and how much it increases over time.
• The number of years remaining on your lease.

Costs can also depend on the route to obtain your lease extension.

• Informal Lease Extensions: Costs are determined and agreed upon directly with your freeholder.
• Statutory Lease Extensions: You are responsible for the valuation and legal costs of both you and your freeholder, plus the premium for the additional years on your lease.

If you’re curious about your expenses, use our handy Lease Extension Calculator to estimate your premium.

About The Lease Extension Company’s Fixed Fee Service

At The Lease Extension Company, we take a fuss-free approach to this niche and complex area of property law. We’ll develop a detailed plan covering all stages, legal requirements and expected costs, which we combine into a straightforward fixed fee so you know what to expect from the beginning.

You’ll also receive the guidance of an experienced surveyor and solicitor to ensure you’re not paying a penny more for your premium than necessary.

Use the LEC for Your Croydon Lease Extension.

Is your lease term close to dropping below 80 years? The best time to act is now. Turn to the LEC for a smooth lease extension with support from start to finish.

Get a quote or book a free consultation with our team by filling out our helpful online form, calling us on 0800 098 2770 or emailing [email protected].