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Claiming back leasehold land as freehold.

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My neighbour had to pay ground rent although he owns the house. When he offered to buy it to make it freehold the land registry could find no record of the people collecting the ground rent ever owning it so he stopped paying it. I've heard you can claim land back and make it freehold again. How many years do you have to own a property before making it freehold again ? Also do you have to inform the Land Registry of the change ?

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1. The fact that the freehold reversion is unregistered does not change the rights of the freehold reversioner.

2. If and when the freehold reversioner resurfaces, or the freehold reversion changes hands (which will trigger compulsory registration of title), you'll be notified of what ground rent is payable. Note that you cannot be successfully sued for arrears more than six years old [Limitation Act 1980].

3. If it's a house, and if you've owned the leasehold for > 2yrs., you can apply via the First Tier Tribunal and County Court for a Vesting Order. You'd buy the freehold reversion from the Court; you'd pay the purchase price into court.

4. Lastly, in certain very limited cases, it's possible for a leaseholder to execute a Deed of Enlargement- a unilateral way of acquiring the freehold reversion. See section 153 of the Law of Property Act 1925- extracts below (with my added underlining):

 

153 Enlargement of residue of long terms into fee simple estates.

 

(1) Where a residue unexpired of not less than two hundred years of a term, which, as originally created, was for not less than three hundred years, is subsisting in land, whether being the whole land originally comprised in the term, or part only thereof,—

(a) without any trust or right of redemption affecting the term in favour of the freeholder, or other person entitled in reversion expectant on the term; and

 

(b) without any rent, or with merely a peppercorn rent or other rent having no money value, incident to the reversion, or having had a rent, not being merely a peppercorn rent or other rent having no money value, originally so incident, which subsequently has been released or has become barred by lapse of time, or has in any other way ceased to be payable;

 

the term may be enlarged into a fee simple in the manner, and subject to the restrictions in this section provided.

 

...

 

(4) A rent not exceeding the yearly sum of one pound which has not been collected or paid for a continuous period of twenty years or upwards shall, for the purposes of this section, be deemed to have ceased to be payable:

...

(5) Where a rent incident to a reversion expectant on a term to which this section applies is deemed to have ceased to be payable for the purposes aforesaid, no claim for such rent or for any arrears thereof shall be capable of being enforced.

...

(7) Thereupon, by virtue of the deed and of this Act, the term shall become and be enlarged accordingly, and the person in whom the term was previously vested shall acquire and have in the land a fee simple instead of the term.

...

Edited by Jeffrey Shaw

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You could try talking to the CAB about getting the previous ground rent back, although if it's not alot of cash it might not be worth bothering.

 

Obviously the strength of any case you do bring will depend on what paperwork your friend has to support his claims.

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You could try talking to the CAB about getting the previous ground rent back

No, if the rent was paid to the true freehold reversioner or under an apportionment covenant.

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No, if the rent was paid to the true freehold reversioner or under an apportionment covenant.

 

Only if though.

 

Although it seems very strange for someone to scam people out of a few quid a year in ground rent.

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Although it seems very strange for someone to scam people out of a few quid a year in ground rent.

So it's possibly not a scam at all.

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No, if the rent was paid to the true freehold reversioner or under an apportionment covenant.

 

I think years ago people used to buy ground rents as an investment. Unfortunately when that person was asked by the house owner if he could buy the lease and make it freehold, no paperwork could be found to prove he owned it and it was not registered with the land registry.. Your advice is very helpful Jeffrey and I shall print it out.

As soon as the seller found that no paperwork could be found he stopped sending in bills for ground rent.

Edited by pattricia

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So it's possibly not a scam at all.

 

Seems unlikely really doesn't it.

 

Administrative error seems more likely.

 

I think years ago people used to buy ground rents as an investment.

 

They still do, you see them pop up from time to time.

Usually packaged as quite a few properties all together, so perhaps the details for your friends place have just been misplaced at one of the companies who buy/sell them.

Edited by geared

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