Manchester Conveyancing Solicitors | Ford Banks Irwin Solicitors - The Property Lawyers in Manchester on Commercial Business Leases
Please note: Not to be used or relied upon without legal advice. These notes are for illustration purposes ONLY
continued from page 9 . . .
Leases - Method of Determination
Conveyancing Solicitors and Property Lawyers will need to consider which method of determination applies to the Lease which is being determined. The following sections provide details of the various situations Conveyancing Solicitors and Property Lawyers may encounter on dealing with the determination of a Lease, together with details of how they should lodge the application in each situation.
Determination - on merger
Merger occurs where a leasehold estate in Land / Property, together with the reversionary estate, come into the same ownership and are held in the same capacity. The Lease is absorbed by the reversionary estate and thus determined. There must also be an intention to merge the estates. The necessary intention to merge must be established by the tenant applying either:
- for cancellation of the notice of the Lease in form CN1
- for closure of the registered leasehold title in form AP1 or
- for merger of an unregistered leasehold estate as part of an application for first registration of the reversionary estate in form FR1 as applicable.
Merger of a registered Lease in a reversionary estate which is neither registered or the subject of an application for first registration
A registered leasehold title may merge into a reversionary estate in the Land / Property which is either already registered or the subject of an application for first registration. Conveyancing Solicitors and Property Lawyers may apply for closure of the registered leasehold title if both the reversionary estate and the registered leasehold estate are held by the same owner in the same capacity.
Merger of an unregistered Lease in a registered reversionary estate - cancellation of notice of an unregistered Lease from the registered reversionary title
Conveyancing Solicitors and Property Lawyers may apply for cancellation of the noted Lease if they can lodge appropriate documentary evidence to prove that both the registered reversionary estate and the unregistered leasehold estate are held by the same owner in the same capacity.
NB: Conveyancing Solicitors and Property Lawyers may also apply for merger on form FR1 if the reversionary estate is the subject of an application for first registration and is subject to an unregistered leasehold estate being determined by merger.
Merger of a registered Lease in a reversionary estate which is neither registered nor the subject of an application for first registration
A registered leasehold title may merge into an unregistered reversionary estate in the Land / Property. Conveyancing Solicitors and Property Lawyers may apply for closure of the registered leasehold title if they can lodge appropriate documentary evidence to prove that both the unregistered reversionary estate and the registered leasehold estate are held by the same owner in the same capacity.
Beneficial easements affecting the leasehold estate
Some Conveyancing Solicitors and Property Lawyers hold the view that on determination of a Lease any beneficial easements granted by the Lease come to an end. Conveyancing Solicitors and Property Lawyers should therefore check whether the reversionary estate has the benefit of an equivalent beneficial easement, if necessary. If not, Conveyancing Solicitors and Property Lawyers will need to decide whether the two estates should continue to be held separately and the Lease should not, therefore, be determined.
NB: Land Registry will not check the Lease for beneficial easements when the Lease is being determined. It is therefore essential on an application for merger.
NB2: In light of Wall -v- Collins [2007] EWCA Civ 444 The Court of Appeal held in this case that an easement must be appurtenant to a dominant tenement, but not necessarily to a particular interest in that dominant tenement. So when a Lease is extinguished on merger, the tenant does not automatically lose any easements granted to him or her or to previous tenants; these easements continue to exist and to be exercisable by the occupier of the dominant tenement for the period for which they were granted.
How to make the application
In addition to the documents required in section: Points to consider on all applications, Conveyancing Solicitors and Property Lawyers should lodge any relevant documentation and make any necessary application to register a transfer or conveyance giving rise to the merger (for example, a conveyance of the reversionary estate triggering compulsory first registration).
(All italics in this page are Crown Copyright and reproduced here for your information with permission from HM Land Registry)
. . . continued on page 11 (Manchester Conveyancing Solicitors Property Lawyers on Commercial Business Leases 11)
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