I purchased a freehold residence in Caversham yet invoiced for rent, why is this and what is this?

It’s unusual for properties in Caversham and has limited impact for conveyancing in Caversham but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.

Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges date back hundreds of years, but the Rent Charge Act 1977 barred the creation of fresh rentcharges from 1977 onwards.

Previous rentcharges can now be redeemed by making a one off payment under the Act. Any rentcharges that are still in existence in 2037 is to be extinguished.

We are expecting a mortgage offer soon. The bank mentioned the home loan came with free conveyancing. Does this mean I have to use their panel lawyer as I would prefer to appoint a Caversham based conveyancing firm?

You should check but the chances are that appoint one of their panel conveyancers where you want the "fee-free" incentive. Speak to the mortgage company and check if they allow a cash alternative. It is not unheard for a lender to give a £250 cashback as a further option in which case you could put that amount towards your preferred conveyancing solicitor in Caversham.

I'm purchasing my first flat in Caversham with a mortgage from . The developers would not move on the price so I negotiated five thousand pounds worth of extras instead. The property agent advised me not reveal to my conveyancer about this side-deal as it may put at risk my mortgage with . Is this normal?.

All lenders require a Disclosure of Incentives Form from the developer of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.

Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.

Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.

I am looking for a leasehold apartment up to £235,500 and identified one round the corner in Caversham I like with a park and transport links nearby, however it's only got 51 years on the lease. I can't really find anything else in Caversham for this price, so just wondered if I would be making a mistake acquiring a short lease?

Should you need a home loan the remaining unexpired lease term may be a potential deal breaker. Reduce the price by the amount the lease extension will cost if it has not already been discounted. If the current proprietor has owned the property for at least twenty four months you may request that they commence the lease extension formalities and then assign it to you. You can add 90 years to the existing lease term with a zero ground rent applied. You should speak to your conveyancing lawyer regarding this.

I bought a 1 bedroom flat in Caversham, conveyancing was carried out half a dozen years ago. How much will my lease extension cost? Similar flats in Caversham with a long lease are worth £165,000. The average or mid-range amount of ground rent is £45 invoiced every year. The lease terminates on 21st October 50

You have 50 years left to run we estimate the premium for your lease extension to span between £36,100 and £41,800 plus professional fees.

The figure above a general guide to costs for renewing a lease, but we are not able to advice on a more accurate figure in the absence of comprehensive investigations. You should not use this information in tribunal or court proceedings. There are no doubt other issues that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Neither should you move forward placing reliance on this information without first seeking the advice of a professional.