Leasehold contract - Can it be amended?

Ms_Sophia

Hello all,

I was wondering if somebody could help me with a question regarding a leasehold contract. We are in the process of buying a new build flat which is a leasehold. The vendors's solicitors sent a proposed leasehold contract to our solicitor. We've reveiwed the contract and proposed some changes to it. Now the vendors's solicitors have come back saying that they will not change ANYTHING in the contract, so it must stay exactly as they proposed as this is their 'preferred version of the contract'.

Is this normal? I was sure that the contract was sent to us to review it and see if we're comfortable with all points in it, and if we're not, then we'll have an opprtunity to propose an amendment to it, and then discuss and get to some kind of agreement with the vendors' solicitors. Now it seems in their opinion we do not have any right to change anything.

What is your opinion/experience in this guys?

Many thanks for your replies.

G_M

Are you talking about the contract of sale, or the actual terms of the lease? Two different things.

The contract used is normally the law societty's standard conditions of sale (version whatever) with the gaps filled in (names, price etc) and special terms added where relevant at the end. The special terms are normally negotiable.

The actual lease which you are buying is fixed.

Tell us what changes you have proposed and we can advise better.

Ms_Sophia

Thanks G_M.

I'm talking about the lease contract (not contract of sale). The contract I've been proposed has been clearly worked out in a way to make sure the 'landlord' (the lessor) has all the rights while we (the lessee) do not have much at all.

One example - according to the lease we are not allowed to make any alterations additions etc in the flat. We might only be able to do minor non-structural changes - but even for that we have to ask for the lessor's consent, we have to provide him with full specs & plans etc. We literally are not allowed to even drill into any walls of the flat. In reality it'd mean we cannot even put shelves or pictures in frames on the walls as that'd require drilling holes in the walls.

devotee

Ms_Sophia wrote: »

Thanks G_M.

I'm talking about the lease contract (not contract of sale). The contract I've been proposed has been clearly worked out in a way to make sure the 'landlord' (the lessor) has all the rights while we (the lessee) do not have much at all.

One example - according to the lease we are not allowed to make any alterations additions etc in the flat. We might only be able to do minor non-structural changes - but even for that we have to ask for the lessor's consent, we have to provide him with full specs & plans etc. We literally are not allowed to even drill into any walls of the flat. In reality it'd mean we cannot even put shelves or pictures in frames on the walls as that'd require drilling holes in the walls.

Really not allowed to drill into walls to put the pictures up?
Are you sure you are not just misreading the contract? Who owns the plaster? You or the freeholder? And non-supporting walls?

Freeholder owns the structural walls which is normal in the leasehold contracts. If you want to make any alterations, like change the layout etc, you'd need to ask permission and that's quite reasonable.
You can't change the lease contract, but you can ask for written permission for any other changes you might want to make.

Never heard of a covenant where you are not allowed to put up shelves!

Ms_Sophia

the contract doesn't say 'cannot ut up shelves'. It says that we cannot drill into the walls. But to put up shelves you have to drill into the walls, there is no other way

Even our solicitor says this clause is too strict.

Are you saying that we have just sign the lease contract even if we do not agree with some of the points? and there is no way they would agree to make any amendments even if those are very reasonable?

devotee

Ms_Sophia wrote: »

the contract doesn't say 'cannot ut up shelves'. It says that we cannot drill into the walls. But to put up shelves you have to drill into the walls, there is no other way

Even our solicitor says this clause is too strict.

Are you saying that we have just sign the lease contract even if we do not agree with some of the points? and there is no way they would agree to make any amendments even if those are very reasonable?

That's seriously strange.

Is it possible for you to speak to the EA who can contact the vendor to clarify those issues? And get them in writing.

If they are unreasonable I'd walk away, but then I don't know how far are you in the process of buying and if that's something you can live with or not - and how much you want the place.

I'm only saying that as I don't know how unreasonable they will be when you eventually decide to sell and sting you with loads of fees for permissions to sell etc.

Ms_Sophia

All we got at the moment is the lease contract. Even if we asked now they are not gonna tell us that when we decide to sell we are going to charge you this and that...

Has anybody had any case when you've managed to change something in the lease contract?

Richard_Webster

This stuff about not making alterations etc is in the draft lease, not the contract. You will have been sent a contract with a copy of the draft lease attached to it.

The Developer will want standard lease wording for all the flats in the dvelopment. Few developer's solicitors will agree amandments of this nature because it makes some of their leases non-standrd.

If you feel really strongly about it threaten to walk away. If the developer is desperate enough to sell he might agree amendments.

Ms_Sophia

Thanks RW.

It does seem strange though that we in fact MUST accept whatever conditions they've decided to put into the lease. So we don't have any choice / any voice in those conditions imposed on us...

geoffky

Far too much one sided for my liking...I would never pay lots and lots of money then agree that i have to ask permission from some one else as to how i spend my hard earned money.

G_M

Leases are generally 'take it or leave it'. People buying flats take on the existing lease with no opportunity to amend the terms. With a new lease you have some possibility to amend them though as Richard says a developer will be reluctant to have different properties on the development with different leases.

Requiring Freeholder permission for structural changes is in 99.9% of leases. Without seeling the precise wording it is hard to comment on the wall-drilling prohibition, but I would relate this to the Party Wall Act requirements. Under this Act, if a home-owner wants to do work on a Party Wall (ie a wall shared with a neighbour - eg a terraced house) there are procedures for informing the neighbour/getting consent. This is to protect the neighbour from you doing damage to a wall that he shares.

However it does not apply to minor, superficial work (drilling into the plaster to put up a shelf). It would apply if drilling in to the structural part of the wall to install a cross-beam as this could affect the stability of the wall.

My guess is your lease would be the same. Anything (drilling or otherwise) that affected the structural integrity of the wall would need permission. A shelf would not. And how would the freeholder know anyway!