The quiet residential streets of Worle, Weston‑super‑Mare hide one of the most unusual leasehold quirks in England and Wales: a cluster of homes still held on a 500‑year lease granted in 1557 by a landowner named Catherine Wallop. Unbeknown to her, this lease has created a legal headache for homeowners, lenders and conveyancers some 470 years later.

This blog unpacks the history, the legal challenges, and what can be done to fix the issue.

What is the issue

The issue stems from a long historic lease granted almost 470 years ago. The lease was granted by a Catherine Wallop to a John Thomas and Isabel Thomas for a term of 500 years from 1st September 1557.

No one in 1557 could reasonably have anticipated that such a lease would still be relevant in the context of modern residential conveyancing. However, the lease still subsists today and continues to bind the land affected by it. Over the centuries, the original land has been divided and redeveloped, and the benefit and burden of the lease will have passed through successive owners. As a result, a number of properties in Worle remain subject to this historic lease, even though day-to-day occupation looks no different from outright ownership.

For those properties affected, homeowners own their homes subject to the remainder of the 500‑year term granted in 1557. As such, they have the benefit of a leasehold interest in the property rather than owning the freehold interest in perpetuity. The freehold interest remains unregistered and technically within the ownership of the successors in title to Catherine Wallop.

The issue is presented in two ways:

1. Inferior class of title. The affected properties are registered at HM Land Registry with an inferior “good leasehold” title rather than the usual “absolute” title. When the affected properties were first registered at HM Land Registry, full documentary evidence of the landlord’s title could not be produced. This was because historic records referred to the lease granted in 1557, but a full copy could not be located.

2. A short lease. The 1557 lease is due to expire in 2057, meaning there is only 31 years remaining on the lease term. Typically, an unexpired lease term of less than 80 years is considered a short lease, and this is when a property’s market value starts to decline. Mortgage lenders take issue with a short lease term and are unlikely to lend against a property with a short lease.

    

The limitations of defective title indemnity insurance

As is common in residential conveyancing, indemnity insurance for issues surrounding defective title and an absent landlord is obtained as a quick “fix” to an underlying problem.

In the case of the Catherine Wallop lease, defective title indemnity insurance does not remedy the underlying issue of a good leasehold title or a short lease term. Indemnity insurance is a patch, not a solution. It does not extend the lease term or fix the title defect.

Many lenders will not accept indemnity insurance alone and will not be comfortable lending against a property where the lease is due to expire in 31 years’ time.

So, what can be done to remedy the issue? For those properties still subject to the Catherine Wallop lease, buying the freehold is the only long‑term solution.

What can be done - the absent landlord enfranchisement process

As the successors in title to Catherine Wallop cannot be identified or located, homeowners cannot extend the lease in the normal way or buy the freehold interest through standard negotiation.

Fortunately, there is a process by which the owner of a leasehold house can acquire the freehold interest from an absent landlord who cannot be traced. The relevant law is set out in section 27 of the Leasehold Reform Act 1967. This allows for the owner of a leasehold house to have the freehold interest vested in them upon payment of a premium to the County Court.

The first step is to apply to the County Court for a Vesting Order. If the Court is satisfied that the homeowner is entitled to make an enfranchisement claim, they will make a provisional Order and transfer the matter to the First-tier Tribunal (Property Chamber). The Tribunal will determine the premium that must be paid into Court.

The matter will then be transferred back to the County Court to make a final Vesting Order and to provide for the payment of the premium into the Court Funds Office. The County Court District Judge will then execute a transfer on behalf of the missing landlord to vest the freehold interest in the homeowner.

An application is then made to HM Land Registry for the first registration of the freehold interest and for the homeowner to be registered as the freehold proprietor. The redundant leasehold title is closed.

This entire process takes approximately 8 to 12 months largely due to the procedural time frames of both the County Court and the First-tier Tribunal (Property Chamber).

The costs of an enfranchisement claim can be broken down as follows:

1. Premium payable to Court. For the enfranchisement of a property subject to the Catherine Wallop lease, the premium payable to Court will range from £4,000 to £8,000.
2. Valuation fee. A formal valuation will need to be obtained from a RICS registered valuer to calculate the premium payable to Court. This will be in the region of £500 plus VAT.
3. Court/Tribunal fees. The fees payable to the County Court and First-tier Tribunal (Property Chamber) will be in the region of £500.
4. Legal costs. These will start from £2,500 plus VAT.
5. HM Land Registry fee. There will be a fee payable to HM Land Registry for registering the transfer of the freehold interest.

The Leasehold and Freehold Reform Act 2024

The Leasehold and Freehold Reform Act 2024 will introduce several procedural changes regarding the enfranchisement of houses where the landlord is absent. This includes shifting the jurisdiction for dealing with enfranchisement claims entirely to the First-tier Tribunal (Property Chamber) and introducing new underlying valuation methods for calculating the premium payable to Court.

These provisions of the 2024 Act are not yet in force. Once implemented, the process for enfranchising a house will likely become cheaper and quicker.

How Berry Redmond Gordon & Penney LLP can help

At the time of writing, there are still over 25 properties in this area of Worle subject to the Catherine Wallop lease.

At Berry Redmond Gordon & Penney LLP, we have dealt with over 70 Catherine Wallop enfranchisement applications. We are the local firm with unrivalled experience in this niche issue.

If you are an affected homeowner in Worle, please get in touch with Harvey West at our Worle branch who will be able to expertly guide you through the enfranchisement process so that you can protect your property’s value.