Lease says no sublet but solicitor says will ask consent

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Lease says no sublet but solicitor says will ask consent

    This was in the lease of the flat we are about to buy for letting.
    My question is has anyone had experience of this wording and have you asked for consent and what has been your experience?

    7a That the lessee will not during the term hereby granted assign sub-let or part with the possession of the whole or any part or parts of the demised premises EXCEPT that this covenant shall not prevent the assignment of the whole of the demised premises to an assignee who has applied to become a member of of the management company nor shall this covenant prevent the lessee from mortgaging or charging the whole of the demised premises and

    B That the lessee will procure that such assignee if so required by the lessor or the management company shall at his own expense enter into a direct covenant with the lessor and the management company and each of them to perform the covenants on the part of the lessee contained in the lease including this present covenant.

    #2
    I'd stay away. If the place is a bargain, guess what, that's the reason.

    Even if you get permission, what's to stop a future management rescinding it? Then you'd have to sell up.
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

    Comment


      #3
      There was a discussion about this in the long leasehokd section a while ago. Apparantly it is reasonably easy for the freeholder to issue a deed of covenant. Message Lawcruncher or Ram who were the main protaganists in the thread. Personally I would have reservations unless there are a substantial amount of flats in the block already let.

      Comment


        #4
        It is usual that if there is an out and out ban on subletting, then you can't sublet.
        It is not an unfair term. It's to protect the property, leaseholders and area.

        The Freeholder "May" relent and give permission to sub-let, but for your flat only, and only for as long as you are good boys and girls.
        Any infraction would see the authorisation recinded, removed etc.

        Each new sub-letting requires permission as well, and could be recinded at any time, for any reason, so as to conform to the "Spirit"of the lease.

        The deed of covenant ( just simple typed, no solicitor needed ) was for the sub-tenant to observe the head lease ( your lease ) and the regulations of the freeholder ( usualy a page on its own ) should you be allowed to sublet.

        but looks like you cannot sublet.
        Do not buy on the fact that the agent "says" they see no problem in sub-letting. You want it in writing from the freeholder.
        But the freeholder does not know you, never seen you, has no indication if you would be good leaseholders and ensure you "police" your sub-tenants, so in that guise, freeholder would probably say no, you are complete strangers, we can't authorise anything till we know how you perform.

        They also may say, "but you do not own the property, so we cannot give authorisation ( if authorisation was possible ) to complete strangers who don't own the property to start with.
        Buy the property and lets see if you are good first"

        It's easier just to say no, no sub-letting. and the freeholder does not have to answer your questions, and often, agents will just make up the rules, to gain a sale ( in my opinion )

        Comment


          #5
          I looked at a flat that had a no subletting clause, and was told that a) "half" the flats were sub let, but b) because of the clause, it would not be possible to get a buy to let mortgage, so I concluded that c) those sublet were either cash purchases, or d) involved some sort of mortgage fraud.

          I didn't make an offer.

          Comment


            #6
            The lease agreement said no sublet but the freehold pack said to get permission from freeholder. The solicitor is in the process of getting consent from the freeholder.
            I don't know what to think

            Comment


              #7
              The freeholder is entitled to state you cannot sub-let, which of course is what he has to do to conform to the lease.
              The lease is a legal document.

              The freeholder can if he wishes, waive that covenant in the lease, but just for you, and only for the first named sub-tenant ( all other lettings need permission as well ).
              There may be other flats in the building that are sub-let, but you will never know if the freeholder is just not bothered, and does not enforce the lease, or he has waived the lease just for those flats.

              All you can do is get it in writing that you Mr X, are authorised to let the flat, Flat number x, should you eventualy procure the lease on that flat.
              Not until you get it in writing from the freeholder that you can sub-let the flat should you proceed with the purchace.

              Permission to sub-let can be retracted / removed at any time, and you have no comeback, as the lease states you cannot sub-let.

              Good luck.

              Comment

              Latest Activity

              Collapse

              • Reply to Recurrent leaks from flat upstairs
                by JK0
                Do you have insurance for the contents? Maybe there is loss of rent cover included there.
                18-05-2022, 06:11 AM
              • Recurrent leaks from flat upstairs
                by Ldawg
                The flat I rent out has suffered from recurrent leaks from upstairs since I purchased it, 4 leaks in 4 years. It's caused me to lose one tenant already. I feel like there is no incentive for the owner upstairs to sort the problem (check the plumbing etc) as the cost is always covered by insurance and...
                24-01-2022, 19:48 PM
              • Reply to RTM director service charge arrears
                by fos333
                This is the important question, what are the reasons for non payment?

                Have demands been correctly served including the correct summaries of rights and obligations?

                Are the landlord obligations under the lease being carried out?

                Have service charge end of year accounts...
                17-05-2022, 21:48 PM
              • RTM director service charge arrears
                by ARG
                Hello, I am new here so please excuse me if this question has already been asked, but a search has drawn a blank.

                I am a director of an RTM of a property with 25 flats. I would be very grateful if anyone here can advise whether a resident who is more than six months in arrears with his...
                17-05-2022, 15:38 PM
              • Reply to Neighbour Dispute over Bins
                by vmart
                Is there a restrictive covenant in the title of the commercial-property owner (CPO) giving you and the other lessee a right of way over the land?

                Is the CPO a freeholder or leaseholder of the land?

                With regard to the point related to '20 years' you are referring to adverse...
                17-05-2022, 21:06 PM
              • Neighbour Dispute over Bins
                by Tony-Edwards
                Hello

                I could do with some guidance if anyone has any knowledge on this.

                I have a 100 year old flat that was split from a larger building in 2000 and has a 999 year lease, it is next door to a commercial premises.

                The only way to get to my flat is across their...
                17-05-2022, 14:40 PM
              • Reply to RTM director service charge arrears
                by vmart
                The RTM can make a money claim online but as this enquiry concerns service charges the lessee will have the right to have the service charges determined unless already agreed. Depending upon the lessee's response to the claim, the County Court may refer the claim to the FTT.

                What are the...
                17-05-2022, 20:54 PM
              • Reply to Recurrent leaks from flat upstairs
                by Ldawg
                Thanks for your response.

                All costs are being covered by the management company. So currently I'm not actually losing out so I'm not really sure what I'm claiming for! More just the stress of it all. And the potential loss of earning and making unrentable/saleable as you say. Yes the floor...
                17-05-2022, 20:22 PM
              • Reply to Lease Extension - Relativity
                by comm1985
                I for one would appreciate a more stable approach in deriving the premium...

                In this instance what would

                1. The sensible premium be?

                A)£32000 (based on the value the actual short lease was just sold for i.e Relativity 65%)
                or
                B)£20,000 (based on graph...
                17-05-2022, 20:19 PM
              • Lease Extension - Relativity
                by comm1985
                Hoping to get some clarification,

                If a flat (Outside Greater London) with 60 years left is sold for £110,000 and comparable properties with longer leases attain £160,000

                What is the relativity in this case?

                Would it be £110000 less 5.5% (to estimate for no act...
                17-05-2022, 15:12 PM
              Working...
              X