• New Lease-charge On Freehold

    By Guest on 20th Sep 2014

    Purchasing a flat in a newly converted building. Freehold title shows a registered charge. Will this charge automatically be noted on the new leasehold title created when registering?

  • 1 Answers

    By Guest on 21/09/2014

    Yes. You will need to obtain from the seller following completion a properly completed form DS3, which is a release of part of a registered charge and will release the part of the building you are buying from the lender's charge (unless the mortgage is being repaid by the seller in full using the proceeds of the sale to you in which case you will need a DS1). As you will presumably requires rights over parts of the seller's title which are not included in the sale to you (shared landings, driveways etc or access to other flats to effect repairs) you should ask the seller to obtain the lender's consent to the granting of the lease, otherwise in the event of repossession by the lender the rights and covenants contained in the lease may not be enforceable against the lender.

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