Making a property a Freehold / Leasehold

by Readers Question

9:39 AM, 14th September 2020
About 2 weeks ago

Making a property a Freehold / Leasehold

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Making a property a Freehold / Leasehold

Hello, Please can anyone point me where to look on the internet (or Property118) where I can read up about how to turn a Freehold Property ie a property with just 1 Land Registry Title into two titles i.e. A Leasehold and a Freehold.

I would also like to be able to read up about valuing the Freehold part of a Property with a Leasehold and Freehold Title.

Last question what is a property called that has both a leasehold and a Freehold Title & what is creating a Freehold/Leasehold called.

Thanks in advance.

Martin


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Comments

Neil Patterson

9:42 AM, 14th September 2020
About 2 weeks ago

Hi Martin,

I always start with the government reference site "Leasehold Advisory Service" >> https://www.lease-advice.org/

Dylan Morris

13:07 PM, 14th September 2020
About 2 weeks ago

No easy to answer your question without understanding details of your current situation and what you are trying to achieve ?

Ron H-W

14:03 PM, 14th September 2020
About 2 weeks ago

Would you be the freeholder (owner of the freehold title) AND the lessee (owner of the leasehold title? The lessee is a "tenant" of the freeholder, and you CANNOT be your own tenant!
If you are wanting to sell (or give etc) all or part of it as LEASHOLD to somebody else, you would grant (whether for payment or other consideration, or otherwise) the lease to this person.
As for your last question, most flats have "both a leasehold and a Freehold Title", because the freehold title to the entire block is held by one party, and the lease by another.
At end (or surrender or foreclosure) of the lease, the titles merge, and the leasehold title MUST be "extinguished" (you CANNOT be your own tenant).
So do think carefully about what you want to achieve - and why!

Puzzler

14:12 PM, 14th September 2020
About 2 weeks ago

This is an odd question, how many self-contained properties are on this title? If only one, why would you want to do this? If more than one e.g. a house converted into flats then you need specialist advice, a lease drawn up etc etc. There is no material value to the freehold on its own.

Old Mrs Landlord

16:40 PM, 14th September 2020
About 2 weeks ago

Reply to the comment left by Ron H-W at 14/09/2020 - 14:03We own a ground floor flat in a two-storey terrace where there are ground floor and first floor flats, with the first floor flat being owned by a third party. We are both the freeholder and the leaseholder of our flat and the freeholder of the flat above. All the flats are leasehold with the ground floor flat owner being the freeholder of both. (This is distinct from the Tyneside Leasehold flats where the downstairs flat is the freeholder of the upstairs flat and vice versa.) This is not a one-off anomally; all the flats on this development were set up like this at the time they were built. If this makes us our own tenant, then what you have stated cannot be true.

Julie Harman

23:45 PM, 14th September 2020
About 2 weeks ago

Hi. I recommend you speak to Bernie Wales for advice on this. He's highly knowledgeable on all things leasehold. Go to http://www.berniewales.co.uk.


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