I am selling my leasehold garden flat. The flat and leasehold were created about 18 years ago as part of a conversion of a large house. When the leasehold for my flat (Flat 1) was first registered with the Land Registry, it was discovered that the garden had accidently been included as part of Flat 2’s title due to an error and so the Land Registry was unable to register the garden to Flat 1. This error was recognised by all parties to both leases and the garden was transferred from Flat 2’s leasehold title (BL97395) to Flat 1’s leasehold title (BL100796) using form TP1. This transfer is noted on both title registers. A few years later, I bought Flat 1. Flat 2 has also changed hands since the garden transfer.
I am now selling Flat 1 and the buyer’s solicitor is saying that due to the transfer of part of Flat 2’s title to Flat 1’s title by this method, in the event that Flat 2 forfeited their lease, Flat 1 would no longer have ownership of the garden, i.e. there is some form of dependency between the title’s of Flat 1 and 2. The buyer’s solicitors say that for the historic garden transfer to be correct and remove this risk, both Flat 1 and Flat 2 have to surrender their leases and then be regranted them by the freeholder.
My solicitor does not agree that this is how the law operates in this area and that the method of transfer of the garden was correct. They have also said that were a surrender and regrant submitted to the Land Registry, it is likely that the Land Registry would reject the submission as it would be viewed as unnecessary work.
I have two questions related to this:
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Does transferring part of a title between two leasehold titles by the method described create the type of dependency described by my buyer’s solicitor
Is there a way of confirming whether the Land Registry would reject the submission of a surrender and regrant request for both flats in advance of submitting all the documentation to the Land Registry? Preparing all the documents and gaining agreement from the owner of Flat 2 is likely to take time, which would be wasted if the submission was rejected.