Merger This is where a leasehold estate in land and the reversionary estate both come into the same ownership and are held in the same capacity. Merger is a matter of intention in that the person holding both estates must want merger to occur. Otherwise the two titles can continue to exist separately.
The term 'held in the same capacity' means that both titles must be held in the same way. For example, although the names of the registered proprietors of both titles might be the same, if one title is held by two or more beneficial joint tenants and the other title by tenants in common, or one title is held on trust and the other is held under a different trust, merger will not be possible.
Documentary evidence of title required In all situations documentary title is required to show that the two estates (the landlord's and the tenant's) have come into the same ownership and are held in the same capacity. This can take the form of either the actual documents or an examined abstract or epitome of title. A form DL is also required, along with the lease and counterpart. If these deeds are not available their whereabouts must be accounted for.
Application forms - Form AP1 is required to close any registered leasehold title.
- If the lease is not registered, but is noted on the landlord's registered title, only a form CN1 is required to cancel notice of the lease. Where the lease is noted as a Unilateral Notice, form UN4 or UN2 will be required instead of a form CN1.
- If the lease is not registered but the landlord's title is being registered as a first registration, the application to merge can be made on the form FR1.
Other requirements - Any new charge lodged must only be against the reversionary title.
- Merger may not be possible if all incumbrances affecting the leasehold estate have not been dealt with; ie. a charge, caution, or restriction etc. A discharge, consent or release as appropriate must be provided.
- Merger is an exempt interest under stamp duty land tax rules and does not require a Land Transaction Return Certificate or a Self Certificate.
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