Help with leasehold ; complicated?

Altior

Hey @eddddy

Many thanks for your time an patience, I keep coming across new stuff as my memory is prompted.

I was going through all of my [multiple] emails with the conveyancer related to the staircasing, and found this:

That is an excerpt of a formal letter, also wrote informally on the email:

Please see attached final report together with the documentation referred to therein.

You should note that whilst your current sub-lease has issues with the parking and extent of the property included, as you will be transferred the headlease, these issues will fall away leaving you with a correct title. If you would like to discuss this further then please contact me.

This is all jargon to me but it appears I am now the 'headlease' instead of the HA. So maybe now the 125 year lease applies to me. I have contacted the solicitors this morning to take a look and inform me if I need to extend or not.

EssexHebridean

A Deed of Substituted Security relates to the charge (mortgage) rather than the property title. It's a document required by the lender to ensure that their security is protected. In this case I assume that you staircased while remaining with the same lender/same mortgage, so they wanted to ensure that the charge was still shown on the revised title.

Altior

https://forums.moneysavingexpert.com/discussion/comment/81881282#Comment_81881282

Thanks, yes I was using that to show that I think the original title was replaced, rather than there now being three.

The solicitor's information appears to show that I am now the head leaseholder. Which is what I think the new title shows.

It's still not entirely clear for me as the HA still arranges the buildings insurance, and are mentioned on the leasehold title.

It does also have this included in the new title:

B: Proprietorship Register
This register specifies the class of title and identifies the owner. It contains any
entries that affect the right of disposal.

3
2021-06-07
C: Charges Register
The Transfer to the proprietor contains a
covenant to observe and perform the covenants
referred to in the Charges Register and of
indemnity in respect thereof.

So the 'Transfer to the proprietor' is transfer to me (I think!) upon fully staircasing.

In plain English I think it means my original lease is now irrelevant, but I still have to follow the terms of the lease that the HA had with the developer (and owner of the land).

Altior

My solicitors responded with a detailed clarification. I've copied it below in case a similar query comes up:

Having reviewed your file and spoken with our Head of Property, I can confirm that prior to your final staircasing there was a shared ownership Lease in place in your favour dated 22 July 2011 which had a lease term of 99 years.

There was also in existence a Head Lease in favour of the Housing Association (registered under title number BM******) which has a lease term of 125 years from 1 December 2007.

Upon completion of your final staircasing, the Housing Association transferred the Head Lease Title to you and the original Shared Ownership Lease was closed.

The term of the Leasehold you own is therefore now 125 years from 1 December 2007 so there is 106 years left on your Lease.

I trust that this clarifies the position for you.  

This has satisfied the situation for me. It appears there is no requirement for intervention for at least another 20 years. I suppose this would have been identified if I had initiated the steps to extend the lease. However, it is better to be aware of the position now.

monkey-fingers

https://forums.moneysavingexpert.com/discussion/comment/81888985#Comment_81888985

Still might be worth buying the freehold if you can.
It makes your house more saleable.

Altior

https://forums.moneysavingexpert.com/discussion/comment/81889677#Comment_81889677

Possibly. The original conveyancer that left the firm asked me to let him know if I planned to sell. I think I will leave it like that, until of course the 80 years cut off becomes close. Depending upon what the law is at the time!

Curiosity_cat

https://forums.moneysavingexpert.com/discussion/comment/81889677#Comment_81889677

I'm debating buying our lease atm, i'm not sure it makes the house more sellable or increases the value. its a difficult stat to track down.