Does lease covenant prohibit holiday lets?

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    Does lease covenant prohibit holiday lets?

    Hello,

    I have a flat that is rented out for holiday lets 12 weeks a year. This is a four star luxury flat (agents brochure rating)that always has very good clients staying in it so I have never had any complaints from neighbours that I run holiday lets, in fact some of the older residents like meeting the familys that stay there over the summer.

    Usually the holiday lets are advertised via a brochure but now they are online a general letter to all residents in the block has been sent saying running holiday lets is against the rules within the leasehold. There must not have been a complaint from the neighbours as the leaseholder does not know which flats are being let as holiday lets so has send out a letter to each resident.

    I fail to see why holiday lets are not allowed and AST rentals are acceptable.

    My question is what power does the leaseholder have to prevent me from running holiday lets should I decide to continue with the business.

    Thanks for any advice.

    Jay.
    Last edited by jayjaykay100; 14-07-2006, 15:10 PM. Reason: Change title

    #2
    Sounds like they have all bases covered then, Thanks for your reply.

    Comment


      #3
      Interesting. Is this thread is actually about Freeholder powers in relation to Leaseholder obligations? I cannot understand why a "Leasholder" is taking responsibility for sending the round robin letter - surely this must be the Freeholder or his agent. Are you a holder of a main lease or are you a sub-tenant?

      We have a restrictive covenant on the Lease of our flat that is rented as an AST that states:-

      and not for any reason whatsover to use the Flat save as a single private dwellinghouse and not to permit holiday lettings
      We are also freeholders of the property and the freehold deed states in addition

      Not to use or suffer the said or several plots or parcels of land or any messuage or tenement or premises ot be erected thereon to be used for any trade or business or otherwise than as private dwellinghouses or for the professional purposes of Physician Surgeon Solicitor or Artist without the consent in writing of the Company or their Successors and assigns first had and obtained
      Struth - how would be find the successors to the Edwardian landowners who sold the site for development

      Just a warning though that for more modern properties there could be clauses within the Freehold that amplify or clarify covenants in the Leasehold.
      Vic - wicked landlord
      Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
      Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

      Comment


        #4
        Holiday letting - lease conditions

        I purchased my Bournemouth flat two years ago and I am in disagreement with my leaseholder because I have used the Flat for Summer Holiday lets. It provides me an income between when I use the Flat for my holidays, other than that it is let out on a 6+ months basis. Is the clause in my lease enforceable as it there is a fine line between my friends paying and using it and a stranger using it through a letting agent. The experiences to date have not given them any cause to complain on the grounds of noise or nuisance, this is I believe them being over zealous. The wording on the lease is :-

        “The tenant shall not underlet the property for any period less than six months or as a holiday flat provided always this clause shall not prohibit the tenants from using the property as holiday accommodation for themselves and or their family and friends.”

        Comment


          #5
          Originally posted by flat2 View Post
          “The tenant shall not underlet the property for any period less than six months or as a holiday flat provided always this clause shall not prohibit the tenants from using the property as holiday accommodation for themselves and or their family and friends.”
          The clause prohibits short sublets (< 6 mths). It does allow casual holiday use by lessee's family/friends (or lessee in person)- which casual use does not involve sublets.
          So there's really no confusion. You want to sublet; lease says that you can't. You're the leaseholder; your dispute is with the freehold reversioner.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

          Comment


            #6
            Property for holiday use- can L alter/cancel lease?

            We own a property on a 999 year lease which has a holiday use restriction. There are 230 of these properties with one Landlord. This year he introduced a security charge with our annual rent and service charge and a large number of us disputed this as we had documentation showing that this was included in the service charge, and in fact he had removed the security for a five month period during the winter and when it was reinstated used a drive by security man rather than an overnight reception service which we had had before.

            They have refused to accept payment omitting the new charge and those that have tried to pay without, have had cheques returned. We have written numerous emails/letters requesting the charge to be removed but have had no response in line with others.

            On 23 December 11 properties were broken into by the freeholders staff, locks changed, and notices put in windows (one attached). the next day a couple of owners received letters (one attached).

            One owner saw a solicitor, who said what they had done was illegal, he had paid his ground rent, and that he was within his rights to change his lock and go back in, which he did. Ten minutes after he left, a maintenance man changed the lock again and put up a new notice.

            He contacted the police but they say they are powerless to act, as there is a mixture of criminal and civil and the freeholder is saying that he has had legal advice and is within his rights. He has added charges of up to £800 for his actions and one elderly couple only owed him £200 which they had withheld for legitimate reason and he had appeared to accept.

            Can we do anything to get the police to act other than spend a massive amount of money. Apparently he has a long history of palying cat and mouse with lessees - i.e. refusing to give them keys to their property, switching off electricity etc. |He makes them run up a legal bill, does not use a solicitor and then just backs down when it gets near court proceedings.

            A large number of these perople are in their seventies and a frightened of him, these houses are now valuless and he is starting to offer really low prices. He has also said that our leases are no longer legal and he is changing them with Land Registry to an old lease, which about 10 people still hold, as this is more beneficial to him than the lease he had written when he took over the freehold.

            Can you help? We are prepared to pay.

            Attachments are too big, is there any other way I can send them to you?

            Comment


              #7
              Certainly L cannot unilaterally alter the leases, nor can he alter HMLR records either. It sounds like the collective leaseholders need to take professional legal advice and consider an injunction agaist this wrongdoer. Sometimes bullies only see sense when whopped over the head with litigation- and, no, I don't deal with litigation, so I'm impartial!
              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
              4. *- Contact info: click on my name (blue-highlight link).

              Comment


                #8
                Forfeiture of lease

                Many thanks for your answers, unfortunately many of the leaseholders have had so many years of this type of abuse that they are frightened of him, they also come from all corners of England so it is very difficult contacting people.

                We have not yet been affected by this illegal action, is there anything we can do to pre-empt this action as we are also in dispute with our bills and will not be bullied into just paying figures plucked out of mid air.

                Comment


                  #9
                  1. Verify each leaseholder's name/address at HMLR, using LR Online to obtain- for each property- a copy of the registered leasehold title.
                  2. The only way to pre-empt L is by injunction.
                  JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                  1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                  2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                  3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                  4. *- Contact info: click on my name (blue-highlight link).

                  Comment


                    #10
                    Thanks

                    Can you tell me what kind of injunction, i.e trespass, harassment ????

                    Do you know of anyone that does online injunctions as they appear to quicker and cheaper?

                    Comment


                      #11
                      Originally posted by D2eej View Post
                      Do you know of anyone that does online injunctions as they appear to quicker and cheaper?
                      I do not know. Try a web search or the very useful website of the Leasehold Advisory Service: http://www.lease-advice.org.
                      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                      4. *- Contact info: click on my name (blue-highlight link).

                      Comment


                        #12
                        Restrictive covenant prohibits holiday lettings

                        Hi, positing this in 'commercial' section as it relates to holiday let rather than rental - sorry if its in the wrong place.

                        I have a house I want to furnish and let as a holiday home. On the 1956 conveyance document there is a rest. cov. that states the property is to be used only for private dwelling or for boarding. So 3 questions:

                        1. Would having people in as holidaymakers constitute boarding?

                        2. The original "Land Company" no longer exist, so is it unlikely anyone would try to enforce the cov?

                        3. Can only the covenant holder enforce it (i.e neighbours can't)

                        4. Would I need to apply for planning permission for change of use, or is a privately-owned home used as a holiday cottage not treated like a Hotel, which is a commercial business?

                        Thanks

                        Comment


                          #13
                          Originally posted by 6024kingedward1 View Post
                          1. Would having people in as holidaymakers constitute boarding?

                          2. The original "Land Company" no longer exist, so is it unlikely anyone would try to enforce the cov?

                          3. Can only the covenant holder enforce it (i.e neighbours can't)

                          4. Would I need to apply for planning permission for change of use, or is a privately-owned home used as a holiday cottage not treated like a Hotel, which is a commercial business?
                          1. Depends. Are these to be self-catering or B&B holidays?
                          2. Original company ('covenantee') might have annexed the covenant's benefit to neighbouring land. Does the benefit appear on any adjoining registered titles' entries at HMLR, for instance?
                          3. Depends- see reply 2.
                          4. Planning Permission: don't know. What is its existing use class, according to Local Planning Authority?
                          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                          4. *- Contact info: click on my name (blue-highlight link).

                          Comment


                            #14
                            Planning permission is not needed I believe but there is a point at which local councils will wish to charge you business rates rather than domestic
                            Unshackled by the chains of idle vanity, A modest manatee, that's me

                            Comment


                              #15
                              Originally posted by jeffrey View Post
                              1. Depends. Are these to be self-catering or B&B holidays?
                              2. Original company ('covenantee') might have annexed the covenant's benefit to neighbouring land. Does the benefit appear on any adjoining registered titles' entries at HMLR, for instance?
                              3. Depends- see reply 2.
                              4. Planning Permission: don't know. What is its existing use class, according to Local Planning Authority?
                              1. Will be self-catering

                              2. Don't know

                              4. Found out that unless house is to be sub-divided it does not constitute change of use, so will remain class C3

                              I am a bit confused about the difference between being subject to restrictive covenants (i.e. I can't do this to my property) and having the benefit of them. How can the owners of a street of houses, where all plots were originally sold by "A Company" who placed res cov's be both subject to them and benefit from them? I though it was only the Company that are the benefactors?

                              Comment

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