Someone please explain these comments from Solicitor "Good Leasehold" & "underlease"

Frank_Sebem

Hi all

We are shortly due to complete the purchase of a local terraced House. However, today we have received a letter from our solicitor which quite frankly sounds a bit scary. Can somebody please read the comments and vexplain them to us? Thanks all.

The title is registered at H.M. Land Registry with Good Leasehold Title. This is not the best form of registered title available, but we consider it to be adequate.



Please note the attached indemnity policy in respect of the titile. Please note the level of cover and should you require this to be increased please let us know.



The Lease is for a term of years from 998 years from 16th June 1875. Please be advised that you are taking a underlease and there is a headlease above you. Please contact us should you require any further clarification of this.



The ground rent under the Lease is 6 pounds 10 shillings and 6 pence, which is Paid half Yearly.



The property is subject to some freehold covenants and stipulations. We do not consider any of these to be of continuing concern because they do not adversely affect use of the property as a private residence. Please let us know if you would like to have full details.



We understand that there are covenants affecting the property, but the sellers are not aware of any breaches having taken place.

What does all this mean please?

It all sounds a bit like a minefield etc

Frank_Sebem

So, we asked for clarification from the solicitor and he replied with the following, but we are still unsure what the score is here. Can somebody put this into plain English please?

1. You are buying a leasehold house. This is unusual.


2. It is registered as good leasehold. Not the best title you can get. I am not aware of the reason why it has been registered with this title. The vendor will not be able to confirm either as they are mortgagees in possession. This is worth considering as although you can be registered as the legal owner this may be raised by future buyers. Please note the attached Indemnity cover on this issue and let me know if you require further explanation;


3. You are actually purchasing a underlease. There is another leasehold title above you. In relation to the lease for the headlease (as indicated on the attached) the copy we have received is not legible. In theory there could be something in this that effects your property but I am unable to confirm this to you