Land Registry Issue - causing selling issue

Land_Registry

AlanCD wrote: »

Thanks for the reply, would a lease interest not come to an end when the freehold is purchased?

From what I can gather -

1946 lease was agreed and signed with original purchaser.
1951 House was sold.
1978 the homeowner died and house was passed on to their son.
1997 freehold was purchased from the company who originally owned the land and built the house.
2003 I bought the house - as a freehold and nothing came up

Leasehold interests can come to an end for example under operation of law or if they are forfeited - the PG I linked you to explains this although it's written with conveyancers in mind so not always an easy read.

I don't quite follow the sequence above as you refer to the lease, then a house, and a freehold so it's unclear as to what life-event matches which interest, namely freehold or lease or both.

To understand things you need to start with how the freehold is registered and how the noted lease is then referred to on the register. Followed by what then happened to the owner of the lease as noted and his/her leasehold interest.

I note that your solicitors are now preparing an application aimed at having the noted lease removed though so the above may not matter at the moment.

AlanCD

Land_Registry_representative wrote: »

Leasehold interests can come to an end for example under operation of law or if they are forfeited - the PG I linked you to explains this although it's written with conveyancers in mind so not always an easy read.

I don't quite follow the sequence above as you refer to the lease, then a house, and a freehold so it's unclear as to what life-event matches which interest, namely freehold or lease or both.

To understand things you need to start with how the freehold is registered and how the noted lease is then referred to on the register. Followed by what then happened to the owner of the lease as noted and his/her leasehold interest.

I note that your solicitors are now preparing an application aimed at having the noted lease removed though so the above may not matter at the moment.

Yeah the solicitors have my pack, which shows the leasehold from the date causing the issue. Also the freehold and everything else associated so I would imagine everything is there to get it removed.

This is my first ever sale, so it's a little daunting.. and things aren't as straight forward as they should be.

So the person who first bought the house in 1946 and agreed the lease, who then sold it in 1951 could still hold a lease on the house? I would have thought that the person who bought in 1951 would have taken over that as I know they continued to pay the lease at £5pa.

The only thing stopping this sale is that original lease from 1946.. As I see it, what harm can this cause? - I mean at £5 a year for 99 years is £495, is this what someone could come up and ask for? or doesn't it work like that? - I mean at that I could just pay it up!

Land_Registry

Exactly - the register refers so the lease still exists until proven otherwise.
What harm could it cause? - someone turns up claiming they own that lease and all that goes with it, for example they can live in the house. Worse case scenario I know and very unlikely but a risk and any buyer would want to eliminate that risk.

silvercar

The only thing stopping this sale is that original lease from 1946.. As I see it, what harm can this cause? - I mean at £5 a year for 99 years is £495, is this what someone could come up and ask for? or doesn't it work like that? - I mean at that I could just pay it up!

The pertinent question is whether you own the freehold or the leasehold property. If you own the leasehold property then the issue is not the £5pa (that you could pay up) but that in 2045 the lease ends and the property reverts to the freeholder. No one will pay full value for a property with less than 30 years remaining on the lease and no mortgage company will lend on it.

bouicca21

The logic of the chronology suggests that the previous owner was the leaseholder and bought the freehold in 1997, not realising that buying the freehold did not extinguish the lease. If this is correct then you need his assistance to confirm the situation and to agree to the termination of the lease.

AlanCD

Great, thanks for the replies I appreciate it. Made a lot more sense as the thread developed.

Just been told by the solicitors they have been in contact with the Land Registry and it has in fact now been removed.

Surprised on how fast it has been sorted but fair play to both for getting it done so quick!..

Hopefully that is that.

Thanks all.