Advise needed regarding lease covenant.

Giant_Space_Lizard

Hi there,

Ok so I am literally days from exchanging contract, I know I am an idiot but I failed to read in detail the copy of the lease.

This is the part that worries me a lot;

The lessee shall not let or sub-let part only of the demised premises.

So does this literally mean I cannot rent out the whole property or even part of the property?

If so please can you tell me, what impact will this have on the value of the property?

e.g is it now 'worth less' due to this restriction?

Any advice on this would be very much appreciated, I am very worried indeed and scared to go ahead now. many thanks in advance

Thrugelmir

Giant_Space_Lizard wrote: »

Hi there,

Ok so I am literally days from exchanging contract, I know I am an idiot but I failed to read in detail the copy of the lease.

This is the part that worries me a lot;

The lessee shall not let or sub-let part only of the demised premises.

So does this literally mean I cannot rent out the whole property or even part of the property?

If so please can you tell me, what impact will this have on the value of the property?

e.g is it now 'worth less' due to this restriction?

Any advice on this would be very much appreciated, I am very worried indeed and scared to go ahead now. many thanks in advance

Are you purchasing this property to let then?

richardw

How long is the lease?

Giant_Space_Lizard

Hi guys,

I am purchasing to live in, I am just worried about selling it at a later date and this impact this has on a properties value.

The lease as worded in the letter from my solicitor is;

The term of the lease granted was 999 years from April 1994.
So hopefully this means the 'tank is full'?

G_M

shall not let or sub-let part only of the demised premises.

You cannot sub-divide the property (eg split the property into two) and let 'part only' (ie half)

You can let the entire property.

Giant_Space_Lizard

G_M wrote: »

You cannot sub-divide the property (eg split the property into two) and let 'part only' (ie half)

You can let the entire property.

ah my solicitor also underlined that part when she sent me the copy, and initially when i read it thats what I thought. But I just spoke to the secretary as my solicitor is out of the office this week, and now she has me worried I will be prohibited from even renting the whole place out.

I literally getting two calls today because they want to exchange friday and complete next wednesday, but I dont want to do anything until my solicitor comes back. I will phone the secretary now and ask her please to consult another conveyancer to be 100%.

many thanks for the quick replies guys really appreciated.

But can I just ask one question, in your opinion, how much is proeprty price affected by these covenants.

Im buying place at 79000. What do you think is property value if I cant let or sub-let? many thanks again

G_M

Giant_Space_Lizard wrote: »

But can I just ask one question, in your opinion, how much is proeprty price affected by these covenants.

Not at all.

It is a standard covenant in, say 80 - 90% of flat leases.

Giant_Space_Lizard

thanks very much for your help G_M its nice to feel the knott in my stomach going away.