Hello everyone,
I’m I correct in thinking that to place a leasehold property into a lifetime trust you would need the consent of the freeholder?If that was true then the transfer into the trustees names would be difficult as a freeholder would not allow (unless you are one of the same).
Thanks in advance
Amanda Coates
Farnworth Rose solicitors.
Only if the lease expressly required the freeholder’s consent to a transfer and even then it is usually subject to a requirement not to unreasonable withhold.
The freeholder may not need to know that the new leaseholder(s) will be trustee(s) (the assignment could just cover the legal title) but, in any case, there are no obvious reasons for the freeholder to object given the trustees would still be personally liable for the service charge and any rent.
Andrew Goodman
Osborne Clarke LLP
Surely this will depend on the specific terms of each lease?
In most cases I have dealt with concerning residential leases the lessor’s consent is required only during the last few [typically 7] years of the term, or for a transfer of part only.
I appreciate there may be differences, perhaps in commercial leases.
Kevin Mullen
An inspection of the lease and also the land registry title would be necessary.
It may be an option that instead of transferring the leasehold title a restriction may be placed over the leasehold in favour of the trust.
Carmen Cottingham
Cottingham Legal Wills and Probate Limited
Thank you all so much for taking time to answer my question.
Amanda Coates
Farnworth Rose solicitors.