Turning a Good Leasehold Title into a Freehold

normal

We're in a slightly odd situation. When we bought our house, it turned out that the freeholder hasn't actually registered the property with the land registry. It is a lease originally created c1850, and has been passed on through generations of the family. The problem is that the current freeholder is an elderly lady who doesn't have any documentation to provide proof of ownership, just a variety of records connected to the lease, and is insufficient evidence for the land registry, hence why it is currently a good leasehold, not absolute. We only have a copy of the original lease documents, and a map. But no proof that she is the rightful owner. She hasn't collected ground rent either.

This was highlighted when we bought the house, and the sellers bought an indemnity policy regarding this. We'd now like to buy the freehold, but no one is sure how this is achievable. Any advice?

kipperman

We had a similar situation with our last house - again good leasehold with a 1000 year lease from 1672. Similar documentation as to you. I did make a few enquiries including the LR but there was no clear cut answer. Point is that I gave up: but it was no barrier to selling nor affected value so whether you think it’s worth the effort and cost is up to you. I think indemnity policy to cover the somewhat unlikely eventuality that  someone can pop out of the woodwork and claim the freehold was about £100. Small beef compared to a house…..

eddddy

normal said:

We're in a slightly odd situation. When we bought our house, it turned out that the leaseholder hasn't actually registered the property with the land registry. It is a lease originally created c1850, and has been passed on through generations of the family. The problem is that the current leaseholder is an elderly lady who doesn't have any documentation to provide proof of ownership, just a variety of records connected to the lease, and is insufficient evidence for the land registry, hence why it is currently a good leasehold, not absolute. 

Having read this a few times, I think you might be using some incorrect terminology.

You talk about the 'leaseholder' being an elderly lady - but I think you must mean the 'freeholder' is an elderly lady. It sounds like you bought the leasehold house, so you would be the leaseholder.

But in any case, Land Registry don't accept that the elderly lady is the freeholder. So essentially, the freeholder is 'unknown' or 'untraceable'.

So you want to do a statutory enfranchisement (i.e. buy the freehold) when the freeholder is unknown - and you only have Good Leasehold title.

normal said:

 We'd now like to buy the freehold, but no one is sure how this is achievable.

Who have you asked?  Have you asked a solicitor who has experience in this area?

There's a well defined process for statutory enfranchisement (buying the freehold) when the freeholder is unknown / untraceable.

Has a specialist solicitor looked into your specific case and said there's a problem specifically relating to your case? Or were these general comments by friends, etc? (Or a comment by a conveyancing solicitor - who might not know anything about statutory enfranchisement?)

normal

Many thanks. You're right, I meant freeholder. I'll correct the original post.

I didn't know the correct terminology to look up a specialist solicitor. I'd asked a family lawyer, conveyancing solicitor and a property manager. Many thanks for mentioning statutory enfranchisement. That really helps

normal

I found this useful introductory guide  on statutory enfranchisement for anyone else interested https://www.channermorgan.co.uk/enfranchisement/statutory-process-houses/?doing_wp_cron=1680300570.7322490215301513671875

and also this on valuation calculations https://www.lease-advice.org/advice-guide/leasehold-houses-valuation/

eddddy

So it sounds like you need to follow the process for buying the freehold, when the freeholder is missing.

Unfortunately, having a missing freeholder makes the process a bit more complicated and more expensive - but a specialist solicitor will know how to deal with it.

Here's a bit of info: https://www.lease-advice.org/faq/i-own-a-leasehold-house-my-freeholder-has-gone-missing-what-do-i-do-if-i-wish-to-acquire-the-freehold/