Help! We are leaseholders of a first/top floor maisonette. L&Q are freeholder. The back garden is currently split on the lease between us and our downstairs neighbours. However, we have agreed that neither of us like the current split and want to change it - as it currently stands we have access across their garden to get to our section. I am concerned that changing the split officially will be incredibly expensive as it may involve not a deed of variation, but a deemed surrender and regrant of the leases. Does anyone have any experience of this?
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You are right that the exercise is likely to prove disproportionately expensive. The documentation is not difficult, but on the other hand not exactly everyday. There are three ways to do it:
1. Each tenant surrenders the part the other wants and on the same day the landlord grants a tenancy to each tenant of the part he wants. The leases can be very short incorporating the terms of the existing lease by reference.
2. Each tenant assigns to the other the part he wants. That may be a problem if the leases prohibit assignment of part. The landlord will need to join in anyway to ensure that the rent is legally apportioned.
3. Each tenant surrenders his lease and on the same day the landlord grants new leases of what each tenant wants. That is not worth considering really.
If mortgages are involved that will complicate things.
You are potentially involving five parties here:
Tennat 1
Tenant 2
Lender 1
Lender 2
Landlord
Apart from the expense it is likely to take ages as it will not figure on anyone's top priority list.
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That's really helpful lawcruncher, thank you. I don't see anything about part assignment in the lease so maybe can go with option 2. Assume in this case though that the assignment would only last as long as the period left to run on the lease itself? Rent is peppercorn so hopefully the freeholder will consent.Comment
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What does the lease say about assignment? Please quote the relevant provision in full?
Is either flat mortgaged?Comment
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Our flat is mortgaged, our neighbours is not. Changing the boundary would only increase the value of the maisonette but I guess that's not the main issue. This is the only provision on assignment I can see in the lease.
Assignment section.jpgComment
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If that is indeed the only provision and the rent is a peppercorn then you can proceed without the landlord's involvement apart from giving notice of the assignment.
Assuming that you are on friendly terms with the other flat owner this is a suitable case where you can save costs by both instructing the same conveyancer. You will need accurate plans drawn up. Before doing anything write to your lender setting out your proposals.Comment
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Hi Jafferz
What did you eventually do on this as I’m in exactly the same situation but we’ve already changed the garden format but now want to formalise it as I want to sell my property.Comment
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Whatever you call the deed it has to include either a surrender and regrant or assignments effecting an exchange.Originally posted by Sancahojo View PostComment
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