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View Full Version : Lease covenant demands consent for sub-letting


kd1
04-04-2008, 10:02 AM
Hello. I have owned my flat for about 18 months and want to let it out. I own one third of the share of freehold. There are three flats in the building (including mine). The lease attached to the freehold states that I must have permission from the landlord to sublet the property. I have written to both of my neighbours requesting permission to let (I need 'the company' to approve and have asked them each as shareholders). One of my neighbours has said 'absolutely not- I don't want tenants in on the basis that the previous owner let the flat and it was a nightmare for me'.

Do I have any rights? If the other neighbours approve along with me, would we be able to veto the NO of the other neighbour as the majority (66.6%) would approve? Is the excuse that tenants could possibly be 'a nightmare' a just reason for not allowing me to let it out?

Any advice would be great.
jeffrey
04-04-2008, 10:23 AM
There are three freehold reversioners. They take decisions re f/r (whether re service charge, improvements, or - as in your case - covenant enforcement) by majority vote, unless unanimity is demanded by a provision in the Leases (or in any Trust Deed). Had the three been members of a f/r-owning limited company, the Articles of Association would similarly prescribe whether majority or unanimity is demanded.
kd1
04-04-2008, 11:38 AM
Great thanks Jeffrey! I just got my hands on the articles of association and they state that 'at least two thirds of the votes cast must be in favour of a resolution'. Will my vote be considered since it is not objective? I guess as a member of the limited company I am considered separate from the decision?

Thank you again.
TaxationPete
04-04-2008, 11:40 AM
Also remember that you have to also gain permission from your mortgage provider and insurer as it is a change of use. Regards Peter
jeffrey
04-04-2008, 12:15 PM
Great thanks Jeffrey! I just got my hands on the articles of association and they state that 'at least two thirds of the votes cast must be in favour of a resolution'. Will my vote be considered since it is not objective? I guess as a member of the limited company I am considered separate from the decision?

Thank you again.
You never said that the f/r is owned by company!
Yes- your vote does count so you only need one of the other two to agree.