Leasehold and freehold titles for the same house?

Leasehold and freehold titles for the same house?

0:01 AM, 3rd July 2024, About 2 weeks ago 7

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Hi, I’m in the process of purchasing a property, which is a 3-bedroom house with two titles: leasehold and freehold. The current vendor holds both titles, but the leasehold has less than 70 years remaining.

Does it need to be renewed before I purchase the house? Will the seller pay? I have spoken with the solicitor’s secretary who mentioned I won’t have to pay ongoing rent because I’ll own both titles after buying.

Will the property become entirely freehold once the lease ends?

Any advice would be greatly appreciated,

Prem


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Darren Peters

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10:43 AM, 3rd July 2024, About 2 weeks ago

Firstly are the Leasehold and Freehold for exactly the same thing? More precisely does the Leasehold pertain to exactly the same land and property as the Freehold? Or, for example, does the Freehold cover everything in the Freehold plus something extra such as a roof space, a garage, or even a bit of scrubland which may or may not be covered by a separate Lease owned by someone else?

If not the same it could mean that the Leasehold would have to remain in some form.

In any case, I believe the same entity cannot own both the Freehold and Leasehold. The seller should be separate sellers even if that means Mr Smith is selling the Leasehold and Mr & Mrs Smith (or Mr Smith Ltd) are selling the Freehold.

This also applies to you. You cannot buy the Freehold and Leasehold of the same property in your own name. Perhaps the seller(s!) will extinguish the Lease before selling to you.

I'm not a lawyer, don't rely on anything I say.

Check the points above with your solicitor to your satisfaction.

NewYorkie

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12:39 PM, 3rd July 2024, About 2 weeks ago

As the freeholder, I would have thought you can decide to extend or even end the lease.

SCP

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13:31 PM, 4th July 2024, About 2 weeks ago

Check the Land Registry Office Copy Entries for both the titles.
You should find there are different owners.

Property Investor

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17:12 PM, 5th July 2024, About 2 weeks ago

Reply to the comment left by Darren Peters at 03/07/2024 - 10:43
Yes you can own both the freehold and leasehold in the same name when you acquire them from someone else. I have done exactly this with my flat.
I believe the restriction is that you can't grant a lease to yourself. But if a lease and the freehold title already exist, you can absolutely buy both in the same name.

SCP

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23:49 PM, 5th July 2024, About 2 weeks ago

Reply to the comment left by Property Investor at 05/07/2024 - 17:12
Hi
Please explain why merger does not apply when the second title is purchased in the same name.

Judith Wordsworth

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10:28 AM, 6th July 2024, About 2 weeks ago

If you are buying cash then don’t need to extend the Lease.
If buying with a mortgage the lender may require you, or the current owner of the leasehold, to extend the lease before the6 will lend on the property.
Stupid I know as both the freeholder and leaseholder are one and the same person.

NewYorkie

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11:56 AM, 6th July 2024, About 2 weeks ago

Reply to the comment left by Judith Wordsworth at 06/07/2024 - 10:28
The reason why titles aren't merged is because the freeholder may wish to sell the leasehold at a future date. However, no reason why the freeholder can't extend his own lease at zero cost if the lender insists. But that's ridiculous because there is no risk where freeholder and leaseholder are one and the same.

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