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Original lease "determined register closed" and longer lease started - is that correct >

4 replies

inappropriateportioncontrol · 28/12/2023 09:39

I’m just trying to understand how long my friends lease is .

She had a lease dated 1982 running for 99 years .
Date : 24 March 1982 Term : 99 years from 1 January 1981

but in 2010 that lease was “determined register closed “.

What I take to be her current lease is longer
Date : 23 December 2009 Term : From 1 January 1981 to 31 December 2169
It seems an odd length and I wonder if I’m correct in thinking this is the current lease

OP posts:
AnonnyMouseDave · 29/12/2023 16:39

I think that this is fairly clear, but obviously hard to be certain without actually seeing the title docs.

On 24 March 1982 a 99 year lease was signed with the 99 year term starting from 1 Jan 1981.

On 23 December 2009 the lease was extended by the 90 extra years that leaseholders are entitled to under the 1993 Leasehold Reform Act, thus the term become 189 years from 1 Jan 1981 and has around 146 years unexpired aas at late 2023.

Note. It is possible that the lease was extended informally, but with the new term being the statutory "unexpired term plus 90 years". It is also possible it was extended formally (ie statutorily under the 1993 Act), and if so, I would expect the title entry to refer to the 1993 Act AND the ground rent to be one peppercorn per annum (if demanded).

inappropriateportioncontrol · 30/12/2023 08:35

Thank you so much@AnonnyMouseDave , I'm so grateful. I thought it would be A simple task to check now of years remaining for my friend but then found is bitten off more than I could chewBlush
I've attached some screenshots of what I think are the relevant bits and VI think they confirm what you explain in your third paragraph.
The first image relates to the whole House.

Original lease "determined register closed" and longer lease started - is that correct >
Original lease "determined register closed" and longer lease started - is that correct >
Original lease "determined register closed" and longer lease started - is that correct >
OP posts:
AnonnyMouseDave · 30/12/2023 11:09

That seems to confirm what I said. I am very confident on what I say, but no liability accepted (obvs!) and without searching the register myself I cannot confirm what might be missing.

Your friend owns Flat 1 on the ground floor, and they (or their predecessor in title) extended the lease on 23rd Dec 2009, by 90 years and reducing the ground rent to one peppercorn pa if demanded. This lease extension is by definition 90 extra years / one peppercorn because it says it is a 1993 Act lease extension, so it has to be 90 / one peppercorn.

This lease was then registered on 18th Jan 2010, and it was on that date, with the newly extended lease extension registered, that the original lease was "determined" (ended, and in this case superceded by the lease extension... though it is worth noting that the lease extension may be an amendment to the original lease and the original lease might still be relevant, even though the term and ground rent on the original lease are definitely no longer relevant!)

You will note that Flat 2 did not statutorily extend their lease, and whilst they have the same 189 years from 1980 as if they had extended under the 1993 act they might be paying a ground rent, and indeed they might be paying a very high ground rent. You will also note that - for some reason - their lease extension took 4 1/2 years to register which makes it look like their solicitor was not very on the ball!

On the face of it the two flat owners have a right to buy the freehold if they get together, and the cost of that freehold is likely to be (very very approximately) -

£100 # Amount down to flat 1
+
£100 # Sundries (split 50/50 between two flats)
+
£100 + £unknown # Amount down to flat 2 (with unknown being like to be in the region of £0 to £25,000 dependent on the ground rent payable)
+
£unknown # Amount down to development value (with unknown being like to be in the region of £0 to £25,000 dependent on whether the building and lease means development value is payable)

Total £300 to £50,000 (with Flat 1's share being £150 plus development value relating to her flat, which could be zero)

Professional costs can run to £6,000 easily.

The Leasehold and Freehold Reform Bill is currently going through Parliament, and if you trust the integrity and competence of the Tory government you can be confident that the cost of the freehold will come down when the law passes. I do not advocate for trusting the integrity and competence of the Tories.

inappropriateportioncontrol · 30/12/2023 19:58

Thank you so much @AnonnyMouseDave , that is so helpful.
I see that we are on the same page as regards trust issues with the current government.
Thank you again .

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