On the balance of probabilities if you own a flat in Caversham you actually own a long leasehold interest over your property
Leasehold residencies in Caversham with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a landlord in Caversham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Caversham valuers.
Lewis was the the leasehold owner of a studio flat in Caversham being sold with a lease of a little over fifty eight years unexpired. Lewis informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mrs M Lefebvre acquired a ground floor apartment in Caversham in May 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Caversham with a long lease were in the region of £173,800. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out on 11 November 2081. Having 55 years remaining we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.
Last Christmas we were contacted by Mr William White , who purchased a first floor apartment in Caversham in May 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Caversham with an extended lease were valued around £235,200. The mid-range ground rent payable was £45 collected monthly. The lease lapsed on 16 November 2092. Having 66 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.