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125 Year Lease question

Land, Registered Land, Planning law etc.

125 Year Lease question

Postby iwanttoaskaquestion » Thu Jul 13, 2017 3:45 pm

Someone has asked me to ask a few questions regarding their Leasehold Flat/Apartment. They
purchased a 125 year lease in around 1985 . In around 2002 without any consultation the Freehold
owner (a Council) sold the freehold to all the Flats to a Company . QUESTION. (a) Should the council
have advised him of the sale to another company ?. (b)Does the Lease then revert back to the original
125 year term when the new company purchased the Freehold ?.

In addition that the same thing has now happened again,In 2017 the company has now sold the Freehold
(of all the flats/apartments) to another Company. The same questions as above apply.

Further, he wishes to purchase the Freehold for his Flat/Apartment and wants to know if he has
rights in that regard such as on price he has to pay ?.

Thanks .
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Re: 125 Year Lease question

Postby atticus » Thu Jul 13, 2017 6:52 pm

The question implies the lease has been extended. If that has been done properly, the full extended term is binding on all subsequent owners of the freehold interest.
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Re: 125 Year Lease question

Postby atticus » Thu Jul 13, 2017 7:21 pm

I am not aware of any way in which the owner of one flat (of a lrger number) can compel the owner of the freehold to sell to him.

Besides, the freehold interest is of rather more property than is demised within this leasehold interest.
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Re: 125 Year Lease question

Postby iwanttoaskaquestion » Thu Jul 13, 2017 9:02 pm

atticus wrote:The question implies the lease has been extended. If that has been done properly, the full extended term is binding on all subsequent owners of the freehold interest.


Nope it has not been extended, he purchased a 125 year lease in 1985 and not extended. He thought/thinks that when a new company purchases the Freehold that
the lease is THEN extended back to 125 years because of the new owner of Freehold.
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Re: 125 Year Lease question

Postby atticus » Thu Jul 13, 2017 9:48 pm

As in, he gets something for nothing?

No.
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Re: 125 Year Lease question

Postby dls » Fri Jul 14, 2017 6:34 am

Buying the freehold is not on for one tenant. It would be a real disaster for all involved.

The freeholder is free to transfer his interest without prior consultation. He serves a notice after transfer to say to whom the rent is now to be paid.

You need to see the Leasehold Enfranchisement Act and other related acts. There is provision for several tenants to join together to enforce a purchase of the freehold of the entire block.
There is a whole lot of legislation and case law on this topic.
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Re: 125 Year Lease question

Postby iwanttoaskaquestion » Fri Jul 14, 2017 11:09 am

Thanks DLS
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Re: 125 Year Lease question

Postby theycantdothat » Fri Jul 14, 2017 4:25 pm

dls wrote:The freeholder is free to transfer his interest without prior consultation.


What about the right of first refusal?
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Re: 125 Year Lease question

Postby atticus » Fri Jul 14, 2017 5:47 pm

What right is that? (the OP is bound to ask.)
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Re: 125 Year Lease question

Postby theycantdothat » Sat Jul 15, 2017 8:25 am

It is explained here: http://www.lease-advice.org/advice-guid ... t-refusal/

The advice says that the right is not applicable to sales by local authorities, though I cannot see where any act says that. If it is indeed the case (and one has to hope that Lease have it right) then that would explain why the first sale went through without notification. As to the second disposal, assuming all the statutory conditions were met, it is possible that it was to a related company which is another case where the right does not apply.
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