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    A strange one here, I have a client who owns the freehold to his house which was originally leasehold and as such he still owns the lease and the titles have not been merged. However he has come to me as his property has a headlease which he does not own and the company that own the headlease are asking a huge amount of money from him to buyout the headlease even though the ground rent payable is around £15 per year of which they then have to pay half back to him as he is the freeholder.

    On the basis that

    a. <span style=”color: black; font-family: Calibri, sans-serif;”>The Leasehold Reform, Housing & Urban Development Act 1993 does not apply to houses.</span>
    <p class=”MsoNormal”></p>


    b. <span style=”color: black; font-family: Calibri, sans-serif; font-size: 12pt;”>the Leasehold Reform Act 1967 does not apply as my client already holds the freehold</span>

    Who sets the value of the headlease and how can my client negotiate this with a stubborn headlease owner?


    Any thoughts are welcome





    It certainly sounds like an extremely uncommon situation!

    Suggest your client contacts the LKP or LAS who may be able to advise accordingly.

    Once you have a definitive answer, post it here – it may benefit someone else (if there’s a possibility of this situation being repeated…).



    I would say the <span style=”background-color: #fbfbfb; color: #404040; font-family: Lato, sans-serif; font-size: 14px;”>Leasehold Reform Act 1967 seems to be the correct legislation. </span>

    As a leaseholder the <span style=”background-color: #fbfbfb; color: #404040; font-family: Lato, sans-serif; font-size: 14px;”>Leasehold Reform Act 1967 allows you to bypass all headleases when you impliment your right to buy the freehold ….in fact you have to serve notices on any superior leases to your own (that you know about) in addition to the freeholder if you proceed .</span>

    However I dont know if any headlease stays in place or is removed as part of the process….but…


    <span style=”text-decoration: underline;”>Advice</span>

    I would suggest (if you havent already done) so speaking to with whom you can book a free 15 minute telephone appointment via their website. I have recently done this and it was helpful….even though I knew a  fair amount already. Your case is fairly specific…you want to rid yourselves of the headlease….

    Just get all youre facts lined up first..I think you could make a further 2nd appointment as well if necessary.

    My appt was on a Sunday afternoon at approx.  16.45 ….I was impressed with their advice and flexibility is Govt funded.


    Not sure if i can post links here or not …but this is a discussion of headlessees… albeit with flat lease extension scenario


    With a normal 1967 freehold purchase by a leaseholder you negotiate voluntarily between leaseholder/freeholder first and if you cant agree a figure the leaseholder serves a legal notice that begins a formal process …. if you still agree after this the price is determined by an independent Tribunal….which you can refer the matter to.

    In England its called the First Tier Tribunal (Property Chamber)

    In Wales its called the Residential Property Tribunal Wales


    So the Tribunals determine values if parties cant agree….

    However the advice you need is specific legal advice on how you can extinguish the headlease….


    Do you have any more details on the lengths of both of the leases – clients and headlease?

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