Is A 999 Lease The Same As Freehold?

[poppet2 13]

If  a 999 lease is classed as freehold, why isn't it just called freehold? What is the difference? 

Also, if you have a 999 year lease, why does the 'official copy of register of title,' include all other leasehold properties which are in the same building? 

[Jim Hardie 523]

6 minutes ago, poppet2 said:

If  a 999 lease is classed as freehold, why isn't it just called freehold? What is the difference? 

Also, if you have a 999 year lease, why does the 'official copy of register of title,' include all other leasehold properties which are in the same building? 

Who classes it as freehold? Freehold is freehold and leasehold is leasehold.

[poppet2 13]

I don't know who originally classes a property as one or the other, just that it makes a big difference when purchasing property.

It surprises me how common it is for houses in Sheffield to be leasehold! 

[Jim Hardie 523]

I think confusion may have crept in because a property with a 999 year lease will have a peppercorn ground rent and as such will have the same valuation as an equivalent freehold property. But it's still leasehold.

Edited February 2, 2020 by Jim Hardie

[poppet2 13]

4 minutes ago, Jim Hardie said:

I think confusion may have crept in is because a property with a 999 year lease will have a peppercorn ground rent and as such will have the same valuation as an equivalent freehold property. But it's still leasehold.

🤔 Now I am confused. So this must be why leaseholders in flats, sometimes have the opportunity to purchase the freehold, after so many years. 

[Chaddamp 0]

your solicitor will be able to clarify for you

[Beamish 19]

If a property is leasehold rent is paid to the owner of the land for the length of the lease. You may be given the option to purchase the land on which the property stands or you may purchase a property which is already freehold, in which case the land would belong to you and would obviously be rent-free.

[poppet2 13]

4 hours ago, Beamish said:

If a property is leasehold rent is paid to the owner of the land for the length of the lease. You may be given the option to purchase the land on which the property stands or you may purchase a property which is already freehold, in which case the land would belong to you and would obviously be rent-free.

I know this, but why a 999 year leasehold, why not a normal 125 years? 

[geared 302]

Is 125 years normal though?

 

I always thought the 999 year ones were setup a long time ago, more recently people have found there's decent money to be made from leaseholding so things have changed.

[Jeffrey Shaw 90]

The  correct answers:

1. A leasehold is (in technical language) a term of years absolute. Its owner (= leaseholder, tenant) owns for a pre-defined time. The 'next owner up' is the freehold reversioner, landlord.

2. A freehold is (in technical language) a fee simple. Its proprietor owns for an undefined time. The 'next owner up' is the Crown.

3. A freehold ends by:

a. the land's disappearance (e.g. clifftop collapses); or

b. its owner's death, leaving no Will and no family members capable of inheriting on intestacy, and the disclaimer of title by the Treasury Solicitor; or

c. the dissolution of a company that owns it and the disclaimer of title by the Treasury Solicitor.

4. When the freehold ends, title paramount is held by the Crown.

22 hours ago, poppet2 said:

Also, if you have a 999 year lease, why does the 'official copy of register of title,' include all other leasehold properties which are in the same building? 

Because sometimes the lease might:

a. include more than one property; or

b. be subject to underleases.

 

Also, you might in fact have meant the official copy of register of the freehold (reversionary) title.

Edited February 3, 2020 by Jeffrey Shaw

[poppet2 13]

Well that's cleared that up. 

Thank you Jeffrey.