The building destroyed in a suspicious fire on New Year's Eve belongs to Croydon Sea Cadets.

No one was injured in the fire which raged during the night, although fire crews were initially searching for missing people feared to have been caught up in the blaze.

Police suspect arson and are investigating the cause of the fire.

Flames could be seen roaring from all three floors of the building on Southbridge Place by the Croydon flyover.

Paul Valleau, 63, a semi-retired duty solicitor was eating his dinner when he saw the mansion alight.

The resident, whose flat overlooks the building, said: “We were having a quiet New Year's Eve, sitting down for a meal and the building just went up. My partner Ruth spotted it out of the window - it just burst from the top and there was fire and smoke coming out of the roof.

“There was a big Grand Prix start to get everyone's cars out of the way, and I went round knocking on various doors.

“We got all of them moved except one, which the fire brigade managed to move but it meant smashing a window to get in to it.”

The cadets, who have been operating in Croydon for the past 60 years, teach young people seamanship, marine engineering and first aid among many other things.

They were forced to evacuate the building, erected in 1839, in June 2009 after a spate of vandalism.

They have been trying to sell the building ever since.

Mr Valleau said: “The sea scouts shut it down about two years ago but it's been inadequately secrured and inadequately fenced.

“About three or four days prior to the fire someone had seen smoke coming from the chimney, and it looks like people had got in to keep out of the cold.

“I think the fire brigade initially thought people were still in the premises.”