Managing agents arrangement (simple question)

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    Managing agents arrangement (simple question)

    Hello,

    I am aiming to complete soon on a flat that I intend to let. The flat is a leasehold. The building has a managing agent who looks after the property and collects the service charge and ground rent.

    I am looking to find a managing agent to manage the let.

    Is it generally a good idea to use the same managing agent who works on behalf of the freeholder, (i.e., does it really make things easier/more efficient?) or are there pitfalls in doing this?

    Many thanks for any replies.

    #2
    Managing a block is a completely different job to managing a short term let.

    Is the managing agent of the block a company which also has a different department dealing in short term lets?

    Comment


      #3
      Yes. .

      Comment


        #4
        Then I think it would make sense to use the same company.

        I'm assuming the lease allows you to sub-let the flat.

        Comment


          #5
          Thanks for that Westminster. We're still waiting for confirmation from the freeholder at the moment about sub-letting, as the copy of the lease is apparently illegible according to our solicitor! (and only 28 days to complete terms!).

          Comment


            #6
            How can you decide to complete on the purchase of a flat when you don't even know if the wording in the lease allows for subletting ?

            You should be checking out the services offered by other local estate/letting agents operating near to your property and their ability to find a tenant for you.

            Comment


              #7
              Hi Gordon999 - indeed - we are not proceeding until we know what the lease says, as clearly we do not want to be in a situation where we do not know what we are signing up for!

              We have been advised from what is legible, that it may appear that the lease is silent on the issue of subletting and our solicitor informs us that it should be fairly straightforward to request a Deed of Variation varying the terms of the lease to specifically state the allowing of subletting.

              We have been advised that this may cost in the region of £250 in legal charges. It is on this basis once a legible and viable copy of the lease is found that we would intend to continue in the purchase.

              I have emailed a number of local agencies for some literature on their services already, but come to think of it, none of them have replied yet, so I'll be crossing them off my list!

              Comment


                #8
                Originally posted by Landlord333 View Post
                our solicitor informs us that it should be fairly straightforward
                to request a Deed of Variation varying the terms of the lease
                to specifically state the allowing of subletting.
                If the lease and freeholder states sub-letting is prohibited,
                in whatever terms the lease may state, then of course you
                can request a Deed of Variation, but a request is not
                permission, and your request can be denied if the lease
                prohibits sub letting.

                But until you see a legible copy of the lease, no one here
                can advise if you can or cannot sub-let.

                R.a.M.

                Comment


                  #9
                  Originally posted by Landlord333 View Post

                  We have been advised from what is legible, that it may appear that the lease is silent on the issue of subletting and our solicitor informs us that it should be fairly straightforward to request a Deed of Variation varying the terms of the lease to specifically state the allowing of subletting.

                  We have been advised that this may cost in the region of £250 in legal charges. It is on this basis once a legible and viable copy of the lease is found that we would intend to continue in the purchase.
                  If the lease is silent in regard to subletting then you are allowed to sublet. Don't pay your solicitor a penny to draw up a deed of variation. In fact, if your solicitor has given this advice, I'd be very concerned about letting him do the conveyancing. Get somebody else to look at the lease.
                  I accept no legal responsibility for comments/advice I make on this forum. Please check with a solicitor before acting on statements made in a public forum.

                  Comment


                    #10
                    Originally posted by Landlord333 View Post
                    Hi Gordon999 - indeed - we are not proceeding until we know what the lease says, as clearly we do not want to be in a situation where we do not know what we are signing up for!

                    We have been advised from what is legible, that it may appear that the lease is silent on the issue of subletting and our solicitor informs us that it should be fairly straightforward to request a Deed of Variation varying the terms of the lease to specifically state the allowing of subletting.
                    You are buying a car which doesn't move.. it must be the flat tires, replace them and it will be fine...right?

                    There may a be simple rider in the lease that says it can only be used by the lessee and their family, which takes one sentence and could be missed in this lease...

                    You do need a deed of variation not to simply deal with subletting but to ensure the lease is a comprehensive one for obvious reasons.

                    As mentioned in other threads on this do look at the neighbouring leases to see if they require all leases to be granted in a similar form and amend using that as a template.
                    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


                      #11
                      Originally posted by siva View Post
                      If the lease is silent in regard to subletting then you are allowed to sublet. Don't pay your solicitor a penny to draw up a deed of variation. In fact, if your solicitor has given this advice, I'd be very concerned about letting him do the conveyancing. Get somebody else to look at the lease.
                      I agree.

                      Also,
                      our solicitor informs us that it should be fairly straightforward to request a Deed of Variation
                      A request is obviously straightforward, but a request may be refused.

                      Comment


                        #12
                        Originally posted by leaseholdanswers View Post
                        There may a be simple rider in the lease that says it can only be used by the lessee and their family, which takes one sentence and could be missed in this lease...

                        You do need a deed of variation not to simply deal with subletting but to ensure the lease is a comprehensive one for obvious reasons.
                        Thanks for the replies - sorry hadn't checked this thread for a few days!

                        OK, I'm a little confused now - Ram and siva are saying not to bother wasting my time with a Deed of Variation for the subletting issue, but you are saying that the lease may contain the use by lessee and family clause. So let me see if I understand this correctly!

                        Is it that if the lease is silent on subletting and does not mention the lessee and family clause, are you also saying that I do not need to worry about a DOV from a subletting perspective?

                        Secondly, once we do have a legible copy of the lease, can I just ask what you meant by getting a DOV to "ensure the lease is a comprehensive one for obvious reasons". As this is all new to me, I'm really sorry I'm not quite sure I follow what the obvious reasons necessarily are!

                        Thanks for your help, it really is appreciated.

                        Comment


                          #13
                          Have you actually seen a copy of the lease? If not, ask for a copy. Do not rely on the conveyancing solicitor to do his job properly (I speak from experience of sloppy conveyancing solicitors).

                          Read it, looking for anything at all which might relate to subletting (either express [e.g. "no subletting"] or implied [e.g."lessee and family only"]). Quote the relevant paragraphs on here.

                          Comment


                            #14
                            Originally posted by westminster View Post
                            Have you actually seen a copy of the lease?
                            This is the underlying issue.

                            Ram and Siva have commented not to be bothered relying on your post.

                            I am however mindful of your related posts where you have stated the lease is in large parts illegible.

                            While nothing than you can read affects subletting that may not mean
                            a; the other parts do not
                            b; size is irrelevant a; could restrict underletting in less than a sentence

                            In a broader context you are unaware of much of what the lease says, does it allow for adequate insurance repair and management of covenants
                            these are all important to the borrowing day to day running and future sale.

                            it would be reckless to proceed without at the very least an awareness of the wording of the lease and a deed of variation to tidy up the blanks, or as I have suggested, an inexpensive surrender and grant basing the new on comparable leases of adjoining units.
                            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


                              #15
                              Thanks for the replies.

                              Sorry, should have filled Ram and Siva in earlier about the lease not being legible, apologies for that.

                              Of course, you are entirely right leasholdanswers about the recklessness of proceeding at present. We do not intend to proceed until we have at the very least had the chance to read a legible copy of the lease in its entirety.

                              If we do need to resort to it, I shall certainly propose to have a new lease drawn up based on adjoining units as you have suggested, as that seems the most sensible way forward if no alternative legible copy can be found.

                              Thank you also for making clear the bit that I wasn't too sure about (e.g., other important aspects of a lease provisions - insurance, repair, management covenants, etc).

                              Can I just ask all of you, with regards to the managing agent, do they normally have a different set of instructions or a document to reference from vs those of the leaseholders?

                              I'm just imagining a scenario where the 4 units in the block have different provisions in their leases and the Freeholder has given a different-again mandate to the managing agents for the insurance, repair and management provisions, etc.

                              Thank you.

                              Comment

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