Extending your lease

As a leaseholder you may want to extend your lease.

If your lease drops below 80 years it can become more expensive to extend it, and future buyers of the property may find it difficult to secure a mortgage.

Do I qualify for an extension?

To qualify for an extension you must have owned the property for at least 2 years. You do not need to be resident at the property, you just need to own it.

How to request an extension

There are two ways that you can request and extension to your lease:

Informal route

  • contact the Leasehold and Home Ownership team at hsg-servicecharges@croydon.gov.uk
  • ask the council for a premium quote; once agreed, 
  • instruct a solicitor to carry out the legal work on your behalf. 

Formal route

Legal costs

You are also responsible for paying:

  • our legal fee - £1000
  • a surveyor’s fee - £250.

VAT is not payable on our fees.

How to calculate your lease years

When working out how many years are left on your lease, you must use the commencement date of the lease and not the date you purchased the property.

Your flat or maisonette would have been purchased originally under the Right to Buy scheme.  This scheme was introduced in 1980 and a 125 year lease would have been granted for the first property sold in the block. The date the first property was sold in the block is called the commencement date, and will be the lease commencement date for any other leases granted in the block, irrespective of the date of completion of the lease. 

How many years is added to the lease

We offer an additional 90 years to the remaining term, so if there are 80 years remaining, the new lease will expire in 170 years. This offer is fixed for 6 months, if you reapply after this time then another valuation will need to be done.

The premium

The premium is the sum of money that the leaseholder pays in exchange for a longer lease. An average premium with approximately 80 to 90 years left on the lease, can cost £2500 to £6500. The valuation of the premium is based on the remainder of the lease term and the property value. 

What if I disagree with the premium?

If you disagree with the premium you can appeal to the First-tier Tribunal, but only in circumstances where you have served a Section 42 Notice.

Selling your property

If you are selling your flat and the purchaser has indicated they would like a longer lease, you do not have to extend the lease before you sell. Instead, you could serve a Section 42 Notice before selling the flat and apply for a lease extension. This document can be assigned by the solicitors to the new lessee and forwarded to Croydon before the sale completes.  If this isn’t done, then the new owner would have to wait 2 years before they can apply themselves.