Freehold & Leasehold Shop

[OIC]

Probably the wrong forum so apologies in advance.

I've seen a shop which has a 999 year lease but appears to still be owned by a freeholder.

What does the freeholder get out of this arrangement (which may be very common - I don't know)?

Can he chuck the leaseholder out if he wants to?

Can he sell the freehold of the shop separately, with or without including the leasehold?

Does he have a say in buildings alterations or repairs?

I can understand a 3, 6, 9 year lease, but 999 years?

Final question - would a copy of the lease be registered with the Land Registry?

I'd like to take a look at the details.

[AndyNetwork]

1.

OIC said:

What does the freeholder get out of this arrangement (which may be very common - I don't know)?

Money - You as the leaseholder have to pay the freeholder money for having a building on their land

2.

OIC said:

Can he chuck the leaseholder out if he wants to?

In theory, yes, but they would be in breach of the lease agreement, hence it being better to have a long lease, like 999 years.

3.

OIC said:

Can he sell the freehold of the shop separately, with or without including the leasehold?

Yes, it's the land he will be selling.

4.

OIC said:

Does he have a say in buildings alterations or repairs?

Alterations, yes, repairs not so much. I had to get permission from the freeholder to add an extension to my house.

5.

OIC said:

I can understand a 3, 6, 9 year lease, but 999 years?

The longer the lease, the less likely the freeholder is to want to take the land back and kick your building off their land. (See point 2 above)

6.

OIC said:

Final question - would a copy of the lease be registered with the Land Registry?

It maybe - I checked the land registry for my house, and the actual lease wasn't there, but the freeholder details were, and the length of the lease, and when it was granted. In my case, there is still 930+ years to go.