Freehold or Leasehold?

user1977

KiKi said:

If that's the case, OP, then you are the freeholder of the whole building, and the leaseholder of both flats.  I would simply speak to a solicitor, and extend the lease to both flats - so as a freeholder you'd be extending the leases to yourself (I assume that's doable - but a solicitor can advise). That way, the flats are sellable, if it comes to it.

But like I said, there doesn't seem to be any advantage in the OP doing this now? If the eventual wish of whoever inherits the property is to sell off the flats individually, they can do that at the time (and create new leases in the process, assuming leasehold even still exists by then...).

eddddy

KiKi said:

I read the situation differently: there are two flats, both of which are leasehold, but the bottom flat owner also owns the freehold to the building.

That doesn't seem to be what the OP is saying:

critchley said:

 When the tenants of the lower flat died we also bought that which was freehold. 

But even if you're correct, it makes no difference to the advice. The best solution would be to extend or replace the lease(s) when the time comes to sell the flats. (Unless the OP wants to do something different to protect their grandson.)

KiKi said:

If that's the case, OP, then you are the freeholder of the whole building, and the leaseholder of both flats.  I would simply speak to a solicitor, and extend the lease to both flats - so as a freeholder you'd be extending the leases to yourself (I assume that's doable - but a solicitor can advise). 

Unfortunately, it isn't doable.  A lease extension is a deed - you cannot have a deed between yourself and yourself.  Similarly, you can't grant a new lease to yourself.

So the OP would have to do something like transfer the freehold into a different name.

That's one reason it's easier to wait until the flat(s) are sold - the OP (or their heirs) can simply grant the lease extension or new lease to  whoever is buying the flat.

critchley

Thanks everyone and I appreciate everyone's input.  From what I have read here it does seem that we could do nothing and let the beneficiaries sort it out after we're gone or that there doesn't seem to be a "one size fits all" answer and if we want to do anything whilst alive we obviously need serious guidance from a Solicitor.