Leaseholder subletting without permission

[pg1]

Hello – we have just discovered this forum and are most impressed by the wealth of information available. We very much hope someone will be able to help us.

We are leaseholders of one of three flats in a block. The leaseholders jointly own and run a residents’ management company, which manages the block, collects service charges etc. The leaseholders have sub-leases with the management company, which in turn has a head lease with the freeholder.

One of the flats is owned by a leaseholder who was previously resident, but has now moved abroad. For the past year he has sublet his flat without the permission of the management company.

If any leaseholder wants to sublet they are supposed to allow the management company to approve both the tenants and the tenancy agreement – but this did not happen. Instead he just arranged for his tenants to move in late at night without any warning. The leaseholder was immediately made fully aware of the fact that this was in breach of the lease, and we have explained what must be done to rectify the breach, both in meetings with his UK representative and in writing. However, nothing has been done, and we have received no assurances that the proper procedure will be followed next time. Although we did not proceed with legal action, we did reserve our rights. As there have been a history of other occasions when this leaseholder has ignored the provisions of the leases, and in each case has shown scant regard for the effect this has had on the other residents, we have no expectation of co-operation in this case.

The sub-tenants have unexpectedly moved out this week, and we now want to take speedy action – hopefully before he lets the flat to new sub-tenants.

Would we be within our rights to inform the uncooperative leaseholder that if he proceeds with another illegal tenancy we will inform his mortgage company of all the outstanding breaches (not just the one relating to subletting)? And if this does not prove to be effective, are they any other measures we can take – before we have to resort to expensive legal action?

We would be very grateful for any help or advice!

[ram]

We here are in a similar position and understand your dilemma.

As you know, you have to be VERY diplomatic, and our stance is to mention that other tenants need to know who are living in the flats, as to suddenly see strangers wandering around, may invoke someone calling the police, or arguments about strangers parking on the property.

You are in your right to inform the owner as you suggest, but mention that as he ignors your letters, you need a contact number and where they work, together with work contact numbers, as if they cause problems, cause damage, then you need to be able to charge them, and it would seem that the owner would not answer any letters on any subject.

Also state that other owners need to know who is comining into the flats, and not just the writer of the letters you send to him. They ( you ) need to know that they have signed a document that they will adhear to the lease.

If there is a common entrance door to the block of flats, then do as I did once, and state that if you are not advised of forthcoming tennants, then you will change the locks of the common entance door, and prevent his tenants from entering the property due to the his violation of the lease. ( prepare a statement for the tenants beforehand to give to them ) And that his tenants may sue him for his negligence.

Unfortunately, if he ignors you again, some one has to confront the tenants, and tell them thay cannot live there, and must vacate the property immediately. Are you prepared to do that ?

If he has appointed a letting agent, be prepared for them to totaly ignor you ( honest ), and do above to them.

Hope this helps

R-a-M

[thevaliant]

I am not convinced that the advice given by RAM is strictly correct. I can't see a situation were the Freeholder could in all honesty get existing tenants of a lessee out? The procedure, if followed would be:

Enforce covenants of lease - involving legal action
If lessee fails to comply, go for forfeiture?
Once forfeiture completed, issue Section 21 notice as new landlord and have tenants removed
Sell leasehold again?

Really though, its a problem. What do you do if a lessee ignore a covenant that has no financial impact?

[ram]

Advice not strictly correct, but its easier to prevent tenants moving in, than incurring financial expense via legal action.

We are in the same position, owners must inform the other owners who is coming into the flats ( be it Tenants or new owners,) and in the last 3 years, in respect of flats being sold, - all solicitors have REFUSED to get permission to assign the lease to the new owners, and have sold flats without the the lease being re-assigned.

No one wants to prevent decent tenants moving in, and if you let your flat you would be upset if your tenants were treated in the way I suggest, but we have this problem now. Estate agents in charge of obtaining tenants for an owner REFUSE to talk to us, wont answer faxes, letters or emails.

In the case of solicitors, none of them ask for the documentation and 2 Director signatures to say that the other owners have no objection to the new owners, and that the new owners will abide by the lease and pay the maintenance charge.

We find out by accident that new owners are about to move in, are bringing pets ( which is prohibited ) and have not had an assignment of lease verified.
On one occasion, I told the solicitors, that if the Management company ( us ) did not receive documentation for me to sign, then the new owners could not move in as they did not have permission ( just a formality to sign ) and they refused to do so, whereupon I said that if they did not get our permission, I would change the locks to the common entrance door, and tell them the solicitors had ignored 2 parts of the lease.

Within 2 hours ( 1 day before new owners were to move in ) the solicitors got in their car, came to MY house, and I signed the documentation for the new owners to live in the flat they had bought. - This has happened once last year and once this year.

Your problem is different, in that the owner wont speak to you, but unfortunately, solicitors and estate agents are a law to themselves, so stand up for your rights, and they tow the line, eventually.

Your question of "Really though, its a problem. What do you do if a lessee ignores a covenant that has no financial impact?

There is no point in having a lease / covanant. if owners, estate agents and solicitors ignor parts of the lease to suit themselves, and if they ignore one part, then that is a downward spiral to ignoring many other covenants.

In our case, solicitors coming to ME with the reguired documentation, is proof that they know they were in the wrong.

Why am i aggresive - because solicitors / agents will walk all over you these days, and above is proof that you CAN be in control. All you want is what is in the lease..

I have never changed locks before owners / tenants move in, but the threat to the agents that it is their fault - soon gets them doing what they should have done in the first place.

Thanks