Private residence - can you short let?

[privateman1]

I have a long leasehold flat with a clause that it must be used as a private residence. Does this allow me to short let? The freeholder thinks it does not. I only rent it out to whole families and not sharers or as rooms. Any advice please?

[theartfullodger]

Please quote EXACT clause - without any names or addresses

[privateman1]

Please quote EXACT clause - without any names or addresses

'to use and occupy the demised premises as a private residence only'

[theartfullodger]

What comes before that -eg "the leaseholder.." Or "whoever happens to be there.."

[Lawcruncher]

This was discussed at some length in another thread but I cannot seem to find it. Anyone, please?

[privateman1]

It is a point from the restrictive covenants.

The lessor hereby covenants the lessor as follows:

to use and occupy the premises as a private residence only

[ram]

Look through the WHOLE of the lease.
Look for
Not to assign, underlet, part with possession of the whole ---- then conditions xyz apply
Not to assign, underlet, part with possession of part of premises ---- then conditions xyz apply
and
On every asignment, underlet ( sublet ) to give to the lessor ---- info on assignments, or within 28 days give lessor details of assignment / underlet
and
To give to lessor a deed or similar

Those are the things that should be in your lease for a definitive answer.

[Gordon999]

I have a long leasehold flat with a clause that it must be used as a private residence. Does this allow me to short let? The freeholder thinks it does not. I only rent it out to whole families and not sharers or as rooms. Any advice please?

You should be renting out under the AST agreement which does not give the tenant any legal rights to stay on after end of the rental period . AST agreements for a private residence are usually offered for 6 months term or longer and normally the tenant assumes responsibility for council tax.

[privateman1]

Thanks everyone.

There is nothing in the lease to state the minimum terms for subletting. The argue meant has come down to whether 'a private residence' allows for short term rentals or not.

[Lawcruncher]

I still cannot find the thread where this was discussed before.

I have though found a case which must have been referred to: Caradon District Council -v- Paton. That was a case involving a covenant imposed on the sale of a house by a council following a right to buy. The court held that holdiday lettings did not amount to residential occupation as there was no intention to reside permanently. However, it was stressed that a covenant to use property for residential purposes only had to be interpreted according to context. The context of the case was that the house had been built with public money to provide a home.

In other situations it may be possible to argue that what is behind the clause is a wish to prevent business being carried out. You may have more luck arguing that holiday letting should be allowed if the flat is on the seafront in a holiday resort.

It is rather the case that holiday lettings are not always considered when a lease is drawn up leaving a landlord who objects to them to fall back on clauses designed for other purposes. In some cases e.g. an absolute prohibition against subletting or parting with possession, the position is clear. In others it is not.

[Lawcruncher]

It has just occurred to me I might find the thread I was thinking of by searching for "Caradon" - I was right!

http://www.landlordzone.co.uk/forums...-in-this-lease