• Freehold Including 2 Leaseholds

    By glasser on 12th May 2018

    Hello - i have just acquired the freehold of a property which my wife and i already own the two leasehold interest apartments, both with separate mortgages, making up the whole property. Two questions - I am told the two apartments on existing established long leases remain as such even though we own the freehold - is this correct and if not what are the consequences? and Second question - when it comes to selling the property made up of both leasehold apartments do we transact on the Freehold with the assignment of both leases to the purchaser or do we transact on each apartment with the Freehold separately or do we assign the freehold to one apartment and then transact on both apartments one being the leasehold and the other de-fecto freehold inclusive of the other apartment?

  • 3 Answers

    By Guest on 13/05/2018

    the purchase of the freehold does not affect the leasehold titles other thsn you are now the landlords as well as the tenants.
    you can sell either of the three titles separetly or you can sell the whole lot by selling all three titles or sort out any oyher legal combination you can legally make (including leases) or sell part and keep part

  • By Guest on 13/05/2018

    Many thanks indeed for confirming ! Am I correct or is life not that simple re if I sell the Freehold and agree a redemption of
    each of the two leases would that not allow essentially just one transaction? However could / would that be considered by
    Hmrc as one sale and negating the part CGT free on one flat being principal private
    residence? How best to proceed to minimise legal costs but not affect CGT allowance on one flat?
    Thanks for your advice!

  • By Guest on 13/05/2018

    Sorry forgot to ask for reply!!

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