A home housing up to 28 vulnerable elderly will be demolished to make way for a new multi-million pound complex almost double its size.

Retirement home Grace Court could undergo a £7.7million redevelopment after owners Croydon Churches Housing Association (CCHA) submitted plans to bring it up to modern-day living standards.

The proposal has attracted a £1million grant from the Greater London Authority and would see the 28 flats on Brighton Road - labelled "not fit for purpose" by ward Councillor Jane Pascoe - demolished and 50 new units built.

The development would consist of 39 one bedroom flats for general rent, 11 one and two bedroom flats intended for shared ownership, and a car park with 23 spaces.

Coun Pascoe, who attended a public consultation on January 25, said: "I welcome this exciting new housing project, and also welcome that the concerns we raised at the consultation about noise, traffic, parking and work times during the construction will be addressed through the planning agreement."

CCHA submitted a planning application on March 31 and have worked on the project in partnership with Orbit Homes, Sutton Housing Society Ltd and the council.

They are hoping for a decision in July and, if granted, anticipate a start date in February 2016 with the aim of completing the scheme in February 2018. Chief Executive of CCHA Tracey Cullen said: "We would not have achieved what we have without the co-operation of these other organisations and we are extremely grateful to them for offering their support. "All residents have been offered the option to move back into the new scheme if they choose to."

Councillor Colin Stears, chairman of the adult social services and health committee, said: "CCHA has involved housing officers at Sutton in all aspects of its decision to redevelop the site and has worked closely with the council on the consultation with residents and the re-housing process."

Plans for the new building - which would range between three-to-five storeys - include two lifts servicing each floor to provide level access to flats, private outdoor areas for each unit, and communal gardens.

The design has scored four of a possible six stars from the Government's Code For Sustainable Homes, by which each star marks the sustainability of a building above the level of standard Building Regulations.

Sutton Housing Society chief executive Chris Turton said: "Grace Court is an important local project which will help to meet the high demand for good quality older persons housing in Sutton.

"We will always assist other social housing providers if it helps to achieve better standards of housing for older people in Sutton."