Can a situation exist where a property also owns the leasehold?

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    Can a situation exist where a property also owns the leasehold?

    I don't know how best to explain this, but will give it a go...

    I live in a leasehold property which is the first floor of a purpose built block of two (i.e. not a converted house). The ground floor property is owned by the freeholder.

    Can there ever be a situation whereby the ground floor property is not leasehold, but is the freehold as well?

    I have checked land registry (and would be happy to share) for the ground floor property and the title that I get when I pay my £3 is for the freehold for both buildings. In the section for "schedule of notice of leases" there is the information about my lease, but nothing for the ground floor property.

    In this situation I would have expected to see a freehold (owned by the landlord) and then two leaseholds under the notice of leases (which I hold and one which the freeholder or another of his companies owns).

    Have I missed something?


    #2
    It is very common. Most ex-council blocks will be like this, unless everyone has exercised right to buy.

    Comment


      #3
      Thank you for your reply – so, if I may in my own situation, is there only one leaseholder and one freeholder (but two properties)?

      Does this mean that I could force a sale of half of the freehold for example via enfranchisement (100% of the leaseholders would want this to happen, i.e. me) or am I missing something?
      Last edited by manchesterpat; 16-07-2019, 13:27 PM. Reason: confused leaseholder and freeholder in my reply

      Comment


        #4
        You meant 100% of the long leaseholders, I presume. I'm not sufficiently familiar with the edge cases of the law, but it would clearly be unfair to the existing freeholder if this were allowed.

        Can you actually force a purchase in this case. I would have thought you only had first refusal rights, as the whole building is not your house.

        Comment


          #5
          Thanks again for your reply.

          Unfortunately I have missed the boat on the first refusal - the property was transferred from the freeholder (own name) to a company in April 2017, which I found out about because I got an invoice with a new name. I thought the freeholder could do whatever he wanted with his property and never challenged this, and I think I only have 4 months from when I found this out to challenge this.

          Comment


            #6
            If as you say the property is not a conversion and is a purpose built block then it seems you have the right to enfranchise. This means you will own 100% of the freehold. The freeholder will have the right to a 999 year leaseback for their flat.

            Are there any communal areas? Commercial areas?

            May I ask your motivation for considering enfranchisement. Are you looking to extend your lease? Or perhaps you are not happy with the management?



            Comment


              #7
              Thank you for your reply vmart - could you point me in a direction where I can read more about this?

              I think I have answered my own question about enfranchisement as the property doesn't qualify - two thirds of the properties in the block are not owned by qualifying tenants, only one (mine) as the other isn't on a lease, so it's only half of the properties in the block.

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