Merging Freehold and Leasehold for 'freehold on completion' property

- Merger can occur where a leasehold estate in land, together with the reversionary estate, come into the ownership of the same person and are held in the same capacity.

- There must also be a clear intention to merge the estates.

- Any mortgage on the leasehold title must be discharged.

- The lease is absorbed by the reversionary estate and thus determined. For details of the various situations that may be encountered, the treatment of beneficial easements affecting the leasehold estate and how to make your applications against any affected titles, please see Determination: on merger.


I'm little bit confusing.

- Do same person mean a single person, or same people? Because our property is joint ownership (two persons), so will it be affected?

- 'mortgage on the leasehold title' must be discharged, we did have mortgage on the property, but we told the mortgage lender that it's freehold (because freehold on completion). So, does it mean any mortgage on the property needed to be discharged and we cannot do mortgage anymore? If not, how can I know if our mortgage is on leasehold title? Because as far as I know the mortgage is on freehold, not leasehold. So, what does it actually mean?

Thanks!
 

Thanks for the explanation.

Re. the second one. What if the mortgage is on freehold title, but not on leasehold title, does it mean no discharge is needed?

And 'Deed of Substituted Security' is the document I can ask from the morgage lender?

Thanks!