Landlord Selling flat, requirement to sign a Deed of Covenant?

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    Landlord Selling flat, requirement to sign a Deed of Covenant?

    Hey everyone,

    We are in the middle our second year (renewed once) as tenants with an AST. The landlord is in the middle of trying to sell the property.

    Today they have informed us that they have a buyer and that they require us to sign a Deed of Covenant.

    I have looked at our AST and the clause reads.

    Head Lease
    To Comply with the obligations of the Head Lease provided a copy of the obligations is attached to this agreement at Schedule A.

    I have checked and cant find the obligations in any of our documentation so I have asked for a copy of the obligations.

    The Deed of covenant they are asking us to sign reads

    IN Consideration of the premises the Tenant hereby covenants with the lessor and the company to observe and perform all of the covenants and provisions on the part of the Lessee contained in the Lease

    We have had a good relationship with the Landlord and are happy to sign, just want to make sure I am not setting myself up for Ground Rent or Service charges when the new Landlord appears.

    Any reason why I shouldn't sign?

    Is there anything you want you might ask for in return eg a 2 year tenancy??
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


      Originally posted by DAVEYOI View Post
      Any reason why I shouldn't sign?
      Looks to me like the document you are being asked to sign is no different to what you've already signed up to? ie, it's just legal reassurance for the new buyer's solicitor?

      IANAL though and I'm sure someone better qualified to comment will be along soon...


        I wouldn't sign something where the effect is unknown. Ask the LL to pay your legal expenses to get advice on what it is you are being asked to sign.


          Thanks for the replies everyone,

          I have asked for the obligations and provisions of the lease covered by the Deed to be provided and they just keep quoting the clause in my AST.

          Which now, I am not even sure we are bound by as the obligations of the Lease were never provided with the AST? Is my reading correct?

          Surely if this was all above board they would just provide the list, right?



            Look, you're not obliged to sign anything. So, if the LL wants you to sign, just tell him to pay for you to get legal advice and if he won't, then too bad - you won't sign. Simple.


              If a copy of the head lease is not attached at Schedule A of your (sub) lease then the proviso in the first clause you quote means that you don't have to comply with the obligations in the head lease. This clause is therefore ineffective by its own words.

              Can you tell us what the terms 'Lessee' and 'Lease' are defined as in the Deed of Covenant. It is not clear if these refer to the head lease or your own lease. I can see no real reason why it would be the latter as you are bound by this anyway. If they are attempting to get you to agree to be bound by the head lease you should not sign anything without obtaining a copy of it first and then having it fully explained to you by a solicitor (with the landlord paying your legal fees). You may also want to ask for something in exchange for signing as, if a copy of the head lease is not attached to your own lease, then you are not currently obliged to abide by the terms of the document.

              The above represents my own opinion, derived from personal knowledge and should not be relied upon as definitive or accurate advice. It is offered free of charge and may contain errors or omissions or be an inaccurate opinion of the law. I accept no liability for any loss or damage suffered as a result of relying on the above.


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