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r0b
01-06-2010, 21:26 PM
Hi,

I'm looking at buying a flat to live in the short term but would like to rent it in the future. I've been sorted the mortgage and paid for valuations etc but while checking over the lease document I have seen the below information. Where exactly does that leave me could I rent it or am I better off pulling out now and just loosing booking fees/valuation costs than buying a flat that I will just have to sell on?



Assignment or sub-letting

10(a) Not to underlet or part with or share possession of any part of the Flat (as distinct from the whole) in any way whatsoever.

(b) Not to underlet the Flat without the prior written consent of the Company.

(c) Not to assign underlet or part possesion of the Flat as a whole without first procuring that the asignee or underlessee enters into a direct covenant with the Company to observe and perform the covenants and conditions hereto and to be subject to compliance by the Lessee with the provisions of paragraphs 11 and 12 of this schedule.

11. Not at any time during the term hereby granted to underlet or permit the Flat to be underlet except upon terms that the undertenant shall be liable to pay throughout the term of such underlease not less than the aggregate of the rents hereby reserved and the Service Charge and the Estate Charge.

Covenants in assignments and underleases

12. To cause to be inserted in every underlease (whether mediate or immediate) except in the case of a sub-letting at a rack rent without payment of a premium for a period not exceeding seven years a covenant by the underlessee with the Company and with the Lessee to observe and perform all the covenants and conditions in this Lease contained (except the covenants for the payment of rent, Service Charge and Estate Charge) with a condition permitting re-entry in case of any breach of any of the said covenants or conditions ( except as aforesaid)

verylonglease
01-06-2010, 21:49 PM
My advice is that you pull out. If you want to let your flat later on, it's probably best to buy the freehold, then you can do whatever you like.

Gordon999
01-06-2010, 23:17 PM
Clause 10 b says renting requires "consent from the company" What does company mean ? freeholder company or management company ?

Is the "lease" a 2 party agreement (between lessor & lessee ) or 3 party agreement ( between lessor , lessee and Management Co ) ?

You need to inspect the last ground rent demand for name of freeholder and its agent and make a google search.

r0b
01-06-2010, 23:27 PM
I get that with a freehold it's much better as you follow your own rules but at the moment I'm only able to afford a flat which I'm hoping to keep as an investment for later on.

Not being a lawyer the above spiel in the lease was a little confusing, is it actually saying no way will you ever be renting this above board?

What are the implications of renting without telling them?

r0b
01-06-2010, 23:29 PM
The company is the Management Company/Freeholder down as Vomero Limited TN12 9AG I googled them but couldn't find out much about them!

leaseholder001
02-06-2010, 08:36 AM
It sounds as though you can sublet the whole flat but need to jump through a few hoops each time you sublet.

You cannot sublet part of the flat.

You need to get written permission to sublet but this cannot be unreasonably withheld. This is fairly typical.

jeffrey
02-06-2010, 10:01 AM
My advice is that you pull out. If you want to let your flat later on, it's probably best to buy the freehold, then you can do whatever you like.
NO! Never buy one flat's freehold alone. What appalling advice!

dominic
02-06-2010, 12:47 PM
NO! Never buy one flat's freehold alone. What appalling advice!

I think what he meant was to enfranchise later on.

As to the covenants re underletting, the consent in (b) must not be unreasonably withheld or delayed, as implied by s.19(1)(a) of the LTA 1927, but (c) seems to be the problem, as it appears to be a licence for the FH to print money, and a pain to get the tenant to sign a direct covenant with the FH.

This will seriously restrict your right to deal in the lease as you wish without undue interference from the FH.

r0b
02-06-2010, 12:58 PM
Would complying with (c) not just be a case of putting cetain clauses within the actual tenancy agreement?

Could these terms within the lease not be amended?

To me even (a) seems a bit excessive "Not to underlet or part with or share possession of any part of the Flat (as distinct from the whole) in any way whatsoever."

This would stop you from legally having a lodger in your property or even a spouse?