Merger – leasehold interest and freehold interest coming into the same hands

Wall v Collins [2007] EWCA Civ 444 (24 May 2007)

We mention this case briefly because it raises an issue of practical relevance to practitioners. Leases will frequently contain rights and easements. Where a leasehold interest and freehold interest come into the same ownership and the owner holds them in the same capacity, merger will arise if there is an intention on the part of the owner to merge them. In effect, the leasehold interest comes to an end because it is submerged into the freehold interest. If the leasehold interest grants rights, it may not be in the owner’s interest to merge the interests because those rights might be lost.