How to make money from my garage?

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    How to make money from my garage?

    Hello all

    I have a leasehold flat in a block, with a garage in a separate garage block. I think the Land Registry documents shows that the garage is tied in with the flat. There does not appear to be any references to specifically the garage within the Lease document.

    Can I make money from letting go of the garage - along the lines of monthly renting it out, or selling it? I'd prefer the latter for a lump sum, but I presume as I don't own the freehold, its not mine to sell permanently? I'm assuming something is possible as I'm aware of a few garages in the block being used by non-Leaseholders.

    Cheers for your help,
    Mark

    #2
    Originally posted by StrangerV2 View Post
    Hello all

    I have a leasehold flat in a block, with a garage in a separate garage block. I think the Land Registry documents shows that the garage is tied in with the flat. There does not appear to be any references to specifically the garage within the Lease document.

    Can I make money from letting go of the garage - along the lines of monthly renting it out, or selling it? I'd prefer the latter for a lump sum, but I presume as I don't own the freehold, its not mine to sell permanently? I'm assuming something is possible as I'm aware of a few garages in the block being used by non-Leaseholders.

    Cheers for your help,
    Mark
    Hi. I'm in the same situation, I would of thought you could rent it out assuming there is nothing in the lease about sub-letting, even if there is, it may well only refer to the actual property, meaning the flat itself. You should also check out the insurance side of things.

    Andy
    Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

    I do not accept any liability to you in relation to the advice given.

    It is always recommended you seek further advice from a solicitor or legal expert.

    Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

    Comment


      #3
      Most leases of flat+garage do prohibit the lessee from splitting them up in the way that you want.
      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


        #4
        In our development garages have been sold between flat owners, but not outside the development. We have more garages than flats.
        I am not a solicitor, I am a lessee/shareholder in conflict with the management. Please seek your own legal advice before relying on my comments in this forum!

        Comment


          #5
          Originally posted by animal View Post
          In our development garages have been sold between flat owners, but not outside the development. We have more garages than flats.
          Still, that's permissible only if:
          a. the leases allow 'splitting'; or
          b. L consents to what would otherwise be a breach of covenant.
          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
            Originally posted by jeffrey View Post
            Still, that's permissible only if:
            a. the leases allow 'splitting'; or
            b. L consents to what would otherwise be a breach of covenant.
            There's no reference in my Lease about 'splitting'. No reference to the garage at all! Is that to say I should seek consent from the freeholder before taking any action? Rather than taking the approach 'there's no mention so I can do whatever I wish!'?

            Incidentially, I was in an Estate Agents today having a mortgage review and I posed the rough question to them. They stated that if the Land Registry Title was for both the Flat and the Garage, the Title would need to be split into two entities, which of course carries a fee.

            I guess I'm still unclear as to under what condition I am selling the garage. Surely it can't be 'for life' as I don't own the land it sits on, merely leasing the right to reside in the flat. Therefore wouldn't the sale be also on the basis of Leasehold - an agreement between the buyer of the garage and the Freeholder?

            Mark

            Comment


              #7
              Is there a covenant about transferring the lease? If so, the 'not to split' one might be just before that.
              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
                Originally posted by StrangerV2 View Post
                Incidentially, I was in an Estate Agents today having a mortgage review and I posed the rough question to them. They stated that if the Land Registry Title was for both the Flat and the Garage, the Title would need to be split into two entities, which of course carries a fee.
                Wrong on both counts.

                1. The title is split only if part is dealt with (e.g. on transfer or mortgage) and the rest is not.
                A mere short-term [< 7yrs.] letting is not a dealing for these purposes.

                2. Even if there's a split, only one fee is payable- and by the new transferee/mortgagee, not the person who will continue as registered proprietor of what's left untransferred/unmortgaged.
                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


                  #9
                  Most letting of spaces and garages are done by licence, often letter licence.

                  By splitting it means parting with possession of part of the premises. Whether or not it is splitting depends on
                  a; the type and term of letting/tenacy/lease
                  b: the wording of the lease as to the demise and premises.

                  None of which most negotiator estate agents will understand.
                  Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                  Comment

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