Lease on underletting whole premise

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    Lease on underletting whole premise

    Hi everyone

    I have searched the forum, googled a lot and referred back to the lease report from when we purchased our leashold flat. However we are still not 100% sure about the below.

    We are currently looking at a new property and while we always thought we'd sell our flat when moving, we are now exploring the option of renting it out instead.

    The lease says the following with regards to underletting (no commas or full stops):

    "The Lessee hereby covenants with the Lessor as follows:
    [...]
    20. Not to assign underlet or otherwise part with the possession of the premises except as a whole
    21. Within twenty-one days after any assignment underletting or devolution of the Lessee’s interest under this present Lease to give Notice in writing thereof to the Lessor’s Solicitors and to produce to them the instrument of such transfer assignment underletting or devolution and to pay to such Solicitors a Registration fee of £10.00 plus VAT"

    Does this mean we can rent out the flat as long as we rent out the whole flat? This is how we understood the term when purchasing the flat and also the lease report says:
    "you may not let part only of the flat".

    Now, as we had some legal advice on other parts of the lease we also asked about this clause (different solicitor) and he came back with:
    "the clause states that you cannot assign underlet or otherwise part with possession of the premises except as a whole. This usually applies to shared-ownership leases where you own less than a 100% share of the flat or in this case this is likely to relate to you not owning 100% of the freehold."

    Wouldn't this be contradicting clause 21? If we are not allowed to underlet at all why would there be a clause saying we have to give notice?
    Also, why would the leasehold take into account whether we own the freehold or not? We do jointly hold the freehold title with the owner of the second flat in the house but the lease was drafted long before when a separate company held the freehold.

    We would seek clarification from the solicitor but he made it clear this would incur further fees and his service was also otherwise not satisfactory.

    Thank you ever so much for your help on this!

    #2
    No that lease clause doesn't prohibit letting your flat but anyway it's totally irrelevant if you own the freehold, just make sure the other owner is happy with your plans.

    Comment


      #3
      You can agree with the other freeholder to waive the registration fee or just settle up by paying for a sunday lunch at your local.

      Comment


        #4
        "the clause states that you cannot assign underlet or otherwise part with possession of the premises except as a whole. This usually applies to shared-ownership leases where you own less than a 100% share of the flat or in this case this is likely to relate to you not owning 100% of the freehold."

        Be wary of any other advice given to you by the solicitor who wrote the above.

        The first solicitor got it right. You cannot, for example, let just one room. You must let the whole flat.

        Comment


          #5
          Thank you so much! That does set our mind to rest and also confirms our suspicion about the second solicitor, definitely not using their service again!

          Comment


            #6
            Originally posted by Home_LT View Post
            Thank you so much! That does set our mind to rest and also confirms our suspicion about the second solicitor, definitely not using their service again!
            Did the solicitor say that seeking clarification to the previous answer they gave would incur further fees? Or, did they mean that a follow up question would incur further fees? If possible, you should seek a refund for the misinformation they gave you. How much did the solicitor charge you for clarifying that part of the lease?

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