Leasehold and freehold and more

brianjones77

We have had an offer accepted on a property. Turns out that the seller is Hodge Lifetime some kind of retirement pension equity release company. The estate agent had told us that and all good. It's now in the hands of solicitors etc but today we've had a look at ththe land registry and it shows as both a leasehold and freehold property. Checked on the plan and it looks like they cover the same area so I'm guessing that it was some kind of scheme where the owner had sold the property and then it had been leased back to them. Do all leasehold properties have a freeholder. So effectively when the tenant moves out there is no leasehold ?

Having no idea how these things work does that sound feasible and is it likely to cause us any problems. Especially as I can tell from the solicitors that if it turns out to be leasehold we will be charged etc. I'm obviously going to speak to solicitor but wondered if anyone had experience.

anselld

Yes all leaseholds have a freehold.

What are you buying? Just the leasehold or both?

You cannot be both the freeholder and the leaseholder so if you are planning to buy both then I think the lease will be surrendered and you will just end up with the freehold as normal.

brianjones77

As far as we knew the property was just freehold until today. Checked with the estate agent earlier and they thought it was freehold. I presume with equity release they buy propert release equity and then lease back to the person living there . So am desperately hoping the lease ends on sale and we are buying freehold

G_M

I'm guessing that it was some kind of scheme where the owner had sold the property and then it had been leased back to them.

This is possible but thre are other possibilities.

Most flats, and some houses, are sold on a leasehold basis. And yes, every property with a lease alao has a freehold Title.

Are both Titles owned by Hodge Lifetime? Which is for sale? Or are you buying both?

G_M

brianjones77 wrote: »

As far as we knew the property was just freehold until today. Checked with the estate agent earlier and they thought it was freehold. I presume with equity release they buy propert release equity and then lease back to the person living there . So am desperately hoping the lease ends on sale and we are buying freehold

If that were the case I would expect the lease Title to be in the name of the person who took the equity release (or his Executers if he'd died), not Hodge Lifetime.

Leases are granted for a period of years, not until they are sold.

brianjones77

Ive got to go back and check but we had asked the estate agent and they had said freehold and thats what we thought/ are buying. The lady living there is moving into sheltered housing

brianjones77

I can only think that it's an equity release where she sold 100% of the property and that's why they as in Hidge are selling it. I presume they'll just end the lease but my concern was that it might cost more with solicitors because of the lease or I could end up with a tenant!

This morning we thought there was land somewhere that was leased in the property

G_M

Estate agents are not reliable in legal matters.

Forget them and rely on your solicitor.

Land_Registry

If you google Hodge Lifetime their site explains what they offer, namely a lifetime mortgage or home reversion plan. From what you have posted it seems likely that this is the latter and may mean that there is a 'lease for life' or similar registered. The registered title should make this clear and it would be the registers that referred to this in some way

From what you have posted and as HL are the sellers it seems likely that the move to sheltered accommodation has probably triggered a clause in the lease whereby it will come to an end and the property is sold.

In essence the lease will be determined in some way and the freehold title then sold.

The devil will be in the detail as always but the key thing your solicitor will consider is ensuring that the existing lease is indeed determined and that HL are able to sell the freehold title free of any leasehold incumbrances.

As posted by others the estate agent is likely to have been advised by HL that it is a freehold sale and that is all the EA would be concerned with. Legal issues around the actual title would be something for your solicitor to then deal with.