You may recall our blog from October 2012 heralding the passing of the Long Leases (Scotland) Act 2012 (“the 2012 Act”).
The 2012 Act was one piece of the Scottish Government’s plan to modernise property law in Scotland and, put briefly, would automatically convert any ultra long leases into outright ownership on the Appointed Day.
To qualify, the Lease needed to be granted for over 175 years at a peppercorn rent, be registered and have at least 100 years (175 years for commercial property) left to run. The only way to prevent the Lease being converted to ownership would be for the Tenant to opt out in advance of the Appointed Day.
The Appointed Day was 28th November 2015 and the right to ‘opt out’ has therefore passed and any non-opted qualifying tenants will now hold full ownership of the property.
This means that a number of registered leasehold titles will now be inaccurate. In order for the tenant to acquire an accurate title sheet, they will need to either submit an application to the Land Register to rectify the title sheet, or certify the conversion when they next deal with their interest in the property.
Registers of Scotland have provided helpful guidance on dealing with conversion on their website which you can read here.
If you have any questions about long lease conversion, or if any queries have arisen from this article, please contact a member of the MBM Commercial LLP Property Team.