Underleases- UrgentInfo wanted

Confused_Jo

Hi,
We are in the process of remortgaing as our fixed deal came to an end. We bought the house 5 years ago as freehold.

Had a blip with the initial solicitor as she failed to pay the stamp duty and we had to remind her that she had taken the cash for it and she should pay the fine as it was part of the service we procured. Fine paid etc, all done and dusted.
Now however, different solicitor that the new lender has, has dicovered that there is an 99 year lease that doesn't appear to have been transferred to us. We were given the deeds and loads of other paper work and it appears that all the previous owners were put onto this lease.

Firstly, how can you have a lease as well as a freehold? I just don't understand it.
Secondly, has our initial solicitor messed this up as new lenders solicitors are talking about indemnity insurance. What is this, who pays it and for how long? There is 25 years left on the lease.
Thirdly, the lady we bought the house from has passed away- how could we transfer the lease now?
Fourthly, should I report the inital solicitor to the Law Society?

Thanks in advance for helpful replies, didn't expect to be in this mess

Jo