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Land Registry questions

13738404243520

Comments

  • On one of the lease docs there is:

    Lessors title number - EX81460
    Leeses title number - EEL105619

    However I assume this wouldn't the headlease title number?
  • Land_Registry
    Land_Registry Posts: 5,776 Organisation Representative
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    Fitzsy wrote: »
    On one of the lease docs there is a title number - EEL105619

    However I assume this wouldn’t the headlease title number?

    Ok - it is probably EGL and it relates to a specific property although the title you mention is now closed.

    But there is a Freehold, Head lease and then Sub Lease. The Head Lease dates from 1909 and we do not have a copy on file it seems
    You are buying the sub lease although I think that is 2003 and not 2005.

    What your solicitor seems to be suggesting is two things

    1. Without a copy of the head lease they don't have a full picture of how the titles interact with one another and what the specific details are under which the head leaseholder has their lease

    I assume that neither the current head leaseholder or freeholder have a copy of the lease themselves. I ask as we are not responsible for holding a copy and both the freeholder and the lessee would be expected to have a copy/the original

    2. Most leases contain what is known as an 'alienation clause' whereby the lessee cannot sublet or transfer part of their leasehold title without the consent of the freeholder.

    They are presumably concerned that the sub lease was granted contrary to such a clause although the head lease and sub lease are registered

    You will need to rely on your solicitor here to try and unravel the issues raised. They will also have to satisfy your lender's requirements as mentioned.
    Official Company Representative
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  • Staffordia
    Staffordia Posts: 342 Forumite
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    My deeds (CB331404) show a restriction between the company who built the house and the previous owners, namely that the property can't be sold with a certificate signed by the applicant for registration. The building company went into liquidation before I purchased the property, and my conveyancer states that this needs to be removed but doesn't appear to know how to go about this.

    Any ideas?
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  • Land_Registry
    Land_Registry Posts: 5,776 Organisation Representative
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    edited 17 April 2018 at 11:45AM
    dunroving wrote: »
    Option 1: Ask the vendor/vendor's solicitor to merge the leasehold and freehold, so that there is only the freehold applying to the property. This is likely to be a very slow process, especially as I believe the original leasehold deeds cannot be found, and the leasehold has never been registered. (Land Registry: What is the likely timeline if we went this route?)

    Option 2: Add the leasehold to the sale (i.e., it currently is not on the TR1 form). I am thinking that this may also be time-consuming as I believe the leasehold will need to be registered as part of the sale, and as above, the original leasehold deeds cannot be found. (Land Registry: What is the likely timeline if we went this route? Would the lease title need to be registered prior to sale?)

    Another option (not even sure if it is an option; I have asked my solicitor about it in an email), is whether the sale can proceed on the basis of the freehold, with a legal undertaking by the vendor/vendor's solicitor to register the leasehold and then transfer to me. I would want this to be legally watertight, with agreed timelines, and possibly even a portion of the sale proceeds to be held back until it has been done. (Land Registry: This may be beyond your comfort zone, as it is a legal question, but are you aware of this process being followed in other house purchases?)

    (Freehold) title number if needed is HW183124

    Option 1 - they would apply to cancel the noted lease. Similar to merger but as the lease is not registered it is a case of appying to cancel the noted lease.

    Outcome then depends on what evidence they have to support the application in form CN1. If sufficient then timescales are around 10/15 working days. The apparent advantage here is that the noted lease refers to the original freehold registered owners as the lessees also so making the link/limiting the risk seems doable.

    Option 2 - if you buy the freehold title you buy it subject to the noted lease. You don't add the lease to the form TR1 as it is only noted. It simply means you own the freehold subject to the lease and there is a risk that someone may come forward at a later date and claim they own that lease now........

    Option 3 - seek to register the lease in it's own right. Why if all you want to do is merge it? If it can be canceleld as a noted lease then it could be merged as a registered lease so little point gewtting it registered and then closing it.

    In my experience, and based on the level of detail provided Option 1 seems to be the route to go for the seller to apply to cancel the noted lease
    They would submit form CN1 along with documents of title to the determining leasehold interest showing satisfactory evidence of title to the unregistered lease similar to that required if they were looking to register it in it's own right for the first time.
    As those details have been lost they would look at the option of providing evidence based on the deeds/lease having been lost

    I'm sure your/the seller's conveyancer will be aware of what is required re either Option

    The alternative is to buy it subject to the noted lease but I suspect your conveyancer will advise against it or your lender won't lend due to the risk. So Option 1 is probably the only option here but please do rely on your conveyancer as we can't advise you on what to actually do but we can explain what we might expect in each scenario
    Official Company Representative
    I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
  • dunroving
    dunroving Posts: 1,881 Forumite
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    Option 1 - they would apply to cancel the noted lease. Similar to merger but as the lease is not registered it is a case of appying to cancel the noted lease.

    Outcome then depends on what evidence they have to support the application in form CN1. If sufficient then timescales are around 10/15 working days. The apparent advantage here is that the noted lease refers to the original freehold registered owners as the lessees also so making the link/limiting the risk seems doable.

    Option 2 - if you buy the freehold title you buy it subject to the noted lease. You don't add the lease to the form TR1 as it is only noted. It simply means you own the freehold subject to the lease and there is a risk that someone may come forward at a later date and claim they own that lease now........

    Option 3 - seek to register the lease in it's own right. Why if all you want to do is merge it? If it can be canceleld as a noted lease then it could be merged as a registered lease so little point gewtting it registered and then closing it.

    In my experience, and based on the level of detail provided Option 1 seems to be the route to go for the seller to apply to cancel the noted lease
    They would submit form CN1 along with documents of title to the determining leasehold interest showing satisfactory evidence of title to the unregistered lease similar to that required if they were looking to register it in it's own right for the first time.
    As those details have been lost they would look at the option of providing evidence based on the deeds/lease having been lost

    I'm sure your/the seller's conveyancer will be aware of what is required re either Option

    The alternative is to buy it subject to the noted lease but I suspect your conveyancer will advise against it or your lender won't lend due to the risk. So Option 1 is probably the only option here but please do rely on your conveyancer as we can't advise you on what to actually do but we can explain what we might expect in each scenario

    Thank you, that clarifies, and indeed confirms some of my current understanding.

    I had read some online threads about these situations (property has freehold AND leasehold), and the opinion was that in some cases, it is more advantageous to own the leasehold and the freehold, rather than merge/cancel the leasehold. I think examples were where the leasehold gave certain rights that might be lost if it were cancelled/merged with the freehold.

    I simply want to get this done as expeditiously as possible and had (mistakenly, by the looks of it) thought that purchasing the leasehold and freehold would be the most straightforward solution.

    We had originally asked the vendor's solicitor to remove the leasehold and according to the estate agent, they had received an email from the vendor's solicitor querying this, viz (quote), "They are questioning the necessity of deleting the lease from the register as it is referred to on many occasions within the freehold." My concern is, as you pointed out, that if I simply go ahead, the leasehold still exists and is owned by the estate of the deceased owner.

    I think the vendor's solicitor was just trying to take the path of least resistance but it sounds like cancelling the leasehold will be a fairly straightforward solution.
    (Nearly) dunroving
  • Land_Registry
    Land_Registry Posts: 5,776 Organisation Representative
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    Staffordia wrote: »
    My deeds (CB331404) show a restriction between the company who built the house and the previous owners, namely that the property can't be sold with a certificate signed by the applicant for registration. The building company went into liquidation before I purchased the property, and my conveyancer states that this needs to be removed but doesn't appear to know how to go about this.

    Any ideas?

    I'd refer them to section 3.8 of our Practice Guide 19 if they are unable to comply with the restriction

    The restriction requires them to confirm that the provisions of the plot Transfer have been complied with. If they can't comply then next step is normally to consider if the restriction can be disapplied
    Official Company Representative
    I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
  • Land_Registry
    Land_Registry Posts: 5,776 Organisation Representative
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    edited 17 April 2018 at 1:38PM
    dunroving wrote: »
    Thank you, that clarifies, and indeed confirms some of my current understanding.

    I had read some online threads about these situations (property has freehold AND leasehold), and the opinion was that in some cases, it is more advantageous to own the leasehold and the freehold, rather than merge/cancel the leasehold. I think examples were where the leasehold gave certain rights that might be lost if it were cancelled/merged with the freehold.

    That can be something to consider but in your case you don't have a registered lease and you don't have a copy of the lease. As such you don't seem to have any 'easements' to consider that may benefit the lease but not the freehold.

    You/your solicitor need to account for any noted interests. The lease is an important one. The seller and their solicitor may for their own reasons see it differently but the 'risk' is yours if you buy hence the probable need to resolve before you do
    Official Company Representative
    I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
  • dunroving
    dunroving Posts: 1,881 Forumite
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    That can be something to consider but in your case you don't have a registered lease and you don't have a copy of the lease. As such you don't seem to have any 'easements' to consider that may benefit the lease but not the freehold.

    You/your solicitor need to account for any noted interests. The lease is an important one. The seller and their solicitor may for their own reasons see it differently but the 'risk' is yours if you buy hence the probable need to resolve before you do

    Thanks again. I have now instructed my solicitor that unless she can see reasons otherwise, I would like to take this route (cancel the noted lease). I think the vendor's solicitor was just being a bit lazy and not bothered to chase this up. That's OK for him but as you pointed out, *I* am the one who would be taking the risk.

    I will post a brief update when this is all resolved, for the future information of anyone in a similar situation.
    (Nearly) dunroving
  • Thanks for your answers to date Land Registry, much appreciated!

    I've found one further complication before I fill in the Assent forms. I've discovered a grant of right of way that has not been registered with the Title. The deed was made in 2003 for the sum of £250.

    Is it possible to add this right of way to the Title during the Assent or will this be a separate process? If it can how would it be done, what form needs to be completed and what evidence would be required?

    Thanks
  • Land_Registry
    Land_Registry Posts: 5,776 Organisation Representative
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    dougybrown wrote: »
    Thanks for your answers to date Land Registry, much appreciated!

    I've found one further complication before I fill in the Assent forms. I've discovered a grant of right of way that has not been registered with the Title. The deed was made in 2003 for the sum of £250.

    Is it possible to add this right of way to the Title during the Assent or will this be a separate process? If it can how would it be done, what form needs to be completed and what evidence would be required?

    Thanks

    You can apply to register the easement at the same time using the AP1. Important to note an application against all affected titles is required plus a £40 fee. See Practice Guide 62 for more details https://www.gov.uk/government/publications/easements

    Odd how it wasn't registered in 2003 but can happen. You may want to get legal advice as well depending on situation and whether PG 62 is enough assistance.
    Official Company Representative
    I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
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