Leasehold completion

The procedural completion is very similar to a freehold transaction. The assignee will pay the assignor the balance of the purchase price and any other sums due including any apportionment. The assignor will hand the assignee such of the following documents as are relevant to transaction:

1. The Lease.
2. The Transfer deed.
3. The Licence to Assign executed by the landlord.
4. Evidence of the freehold title in accordance with the Contract.
5. Evidence of discharge of the assignee’s mortgage.
6. Copies of the duplicate notices served by the assignor and its predecessors on the landlord in accordance with the covenant in the Lease requiring the landlord to be notified of any disposition.
7. The insurance policy relating to the last premium due.
8. Receipt for rent.

The assignee should hand to the assignor such of the following items relevant to the transaction:

1. Money due in accordance with the completion statement.
2. Duly executed Licence to Assign.
3. Release of a deposit.

Following completion, the following should be considered:

1. SDLT/LTT – this is payable only on any purchase price charged by the assignor and is due at the same rates using the same procedure as the sale for freehold land. No SDLT or LTT will be charged on the rent as it will have been paid when the Lease was granted.
2. Where the Lease is registered at the Land Registry an application for registration of the Transfer to the assignor should be made with a priority period given by the completion of the OS1 search. This is irrespective of the length of time of the Lease once registered the Lease continues to be registered until it expires with respect to an unregistered Lease which at the date of the Transfer to the assignee still only 77 years of the term unexpired will need to be registered at the Land Registry within two months of the assignment or be void in respect of the legal estate. An application for registration with absolute title can be made where the assignee can produce satisfactory evidence relating to the superior title. In other cases, only good leasehold title can be obtained.