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Scottish law does not permit residential leases, and limits the maximum duration of a commercial lease to 175 years. However some older leases still exist which do not follow these rules. These older leases can, in many circumstances, be converted into ownership. The result of the conversion is that the previous leasehold title is replaced by a new ownership title.

How will I recognise leasehold conversion?

• The deed being registered is a disposition, but previous sales of the same property were assignations.
• The further information section of the application form might include a note stating that conversion has taken place, or referring to the Long Leases (Scotland) Act 2012.
• The supporting documents might include a letter stating that conversion has taken place, or referring to the Long Leases (Scotland) Act 2012.
• There may be a previous referral on CMS, stating that conversion has occurred.
• There may be an LRS note stating that conversion has occurred.

What else do I need to know?

• On occasion, you may come across a deed in which the subjects are both assigned and disponed. This is usually the result of historic conveyancing which attempted to convert the property from leasehold to ownership. There is an example below. Please add the Long Lease Conversion characteristic, even if the agent has not requested leasehold conversion in the application form or supporting documents.
• Conversion can also take place in a VR application. In this case, where there is no disposition being registered, the solicitor will invariably refer to the leasehold conversion either in the application form or in a letter in the supporting documents.