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LEASEHOLD OR FREEHOLD

Posted on January 17, 2013

by Ray George

The majority of the properties in the estate are leasehold for 999 years from 1926. The ground rents vary slightly but are typically £7 per year (about £300 in today’s money). The freeholder Woodhill Properties Limited uses an agent, Highfield Estates, to collect the rent.

Sometimes the buyer’s solicitor fails to notify the freeholder that the lease has been assigned to a new owner. This is because he has failed to discover that the Southampton and District Land Company in the lease was renamed Woodhill Properties Limited.

The Leasehold Reform Act 1967 allowed leaseholders to buy the freehold, but only after they had occupied the property for five years (now two years). These days, Woodhill Properties will voluntarily sell the freehold and so sometimes purchasers of a house, buy the freehold at the same time.

Some people erroneously imagine that if they buy the freehold, they will be relieved of all the restrictive covenants in the lease. They will indeed be spared such quaint restrictions as not hanging out washing on a Sunday, but the conveyance of the freehold will impose all the important provisions, for example, not making any external alterations without the consent of Woodhill Properties.

Having bought the freehold, you are now in the curious position of leasing the property from yourself. When the lease has no encumbrances, such as a mortgage, you can apply for closure of the registered leasehold title.

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