Rent out parking lot in lease hold property

keymon

Hello,

I have recently buy a leasehold apartment in a new building, and the builder is giving me the opportunity to buy one of the parking lots. I do not own a car, but that is an interesting option because I do not discard buy one in the future. But if I buy it would like to rent out the parking lot, at least to one of the neighbours in the block.

I asked the builders solicitors, and they simply said that that is up to my interpretation. My solicitor said that not given the clause that I will paste below, but he did not explain it at all and did not sound confident. Asking for this clause to Barclays legal phone advice, they said that I can do providing ask for permission sublet.

My own personal interpretation is that we CAN rent it out, providing that we ask for permission to the Manager and the user of the parking is the legal person in the sublet contract. In consequence I cannot rent it via a Parking Share website or to a company or similar.

The lease clause is this, and the main problem is the 3rd point:

Not at any time during the Term:

1 without the prior written consent of the Manager (such consent not to be unreasonably withheld or delayed) to sublet the whole or any part of the Premises provided that no consent is necessary for the grant by the Tenant or any under-tenant of an assured shorthold tenancy in relation to the Premises
2 to separately assign transfer or part with the possession or occupation of any part or parts of the Premises as distinct from the whole but only to assign transfer or part with the possession thereof as a whole and not to assign transfer or part with the possession or occupation of the Premises during the last 7 years of the Term without the prior written consent of the Manager or its agents (such consent not to be unreasonably withheld or delayed)
3 subject to the preceding paragraphs 30.1 and 30.2 not to assign sub-let share possession with or otherwise dispose of any rights enjoyed over the Allocated Space (if any) to any person who is not or shall not prior to the completion of any such disposal be a lawful assignee or underlessee of the Premises

What do you consider?

mije1983

Whether you can rent it out or not, the sensible option would surely be to buy it anyway. When you come to sell it's going to look more atractive if it comes with a parking space rather than not.

booksurr

you are asking for legal advice from strangers on a forum yet you are already paying for your own legal advice

are you using a solicitor or are you using one of the cheap "conveyancers". If you are paying for a solicitor then let them tell you what the legal clause means since they are the ones who are qualified to interpret them, not the flipping builders

G_M

are you doing the conveyancing yourself?

keymon

I am not doing conveyancing by myself.

I am asking for a second opinion and if it makes sense what I am being told by the conveyancing agency (which is meant to give legal advice). I want to know if I should insist, try hiring other agency, or simply don't buy the parking. I also want to share my experience and learn from others experience.

I agree that the parking will increase the value of the property, and that is why I am considering it.

But I would still be in doubt if I can rent it out or not.

anselld

Para 3 would seem to indicate that you can sub let the parking space to someone else I the block but not strangers from outside.

However, it surely cannot be a deal breaker. Just get the parking space and see what happens.

keymon

anselld wrote: »

Para 3 would seem to indicate that you can sub let the parking space to someone else I the block but not strangers from outside.

Thank you for your comment.

Actually the paragraph says "Premises" which is the flat (Note, previously I incorrectly said flat + parking lot). There's a definition of Block, which is what you mean, but it's not mention here.

What bothers me is the concept of "lawful assignee or underlessee of the Premises". It does not say the promises as a whole. Is somebody with a lawful sublet contract of the parking a lawful underlessee of the Premises?

And in other paragraphs of the lease where the word Premises is uses, it clearly means part of whole, like when it says I cannot damage the Premises or store rubbish. If that clause refers to the Premises as a whole, I could say that that rule of thumb applys to all the lease.

Other thing it worries me is that if this is the case and I cannot sublet the parking, I cannot have a roommate. Even if I start a relationship and we decided to have my partner moving in, it would be illegal!

Edition:
- Per comments from other forum members, this answer was wrong. "Premises" does not refer to the Parking lot, but "Allocated Space" does.

AlexMac

I agree that in some areas, a flat with Parking will be easier to sell on...

But the "no subletting.." clause is a bit like the many other standard precautionary clauses in leases (such as those about pets, carpets-vs-wood floors, not running brothels, marijuana farms or knackers businesses, short term "holiday lets", noise, etc).

Some are important, some aren't...

And if, having bought the space you let someone park a car in it, will your neighbour leaseholders know or care... to the point of getting the freeholder to start expensive legal action?

After all, its not as if you plan to plonk a burger van on it or set up a Travellers' site (although there's an idea?)

davidmcn

Can you give us the definitions of "Premises" and "Allocated Space"?

keymon

AlexMac wrote: »

...

And if, having bought the space you let someone park a car in it, will your neighbour leaseholders know or care... to the point of getting the freeholder to start expensive legal action?

That's true, especially when my plan is rent it to neighbours in the same buildings if I find any.

AlexMac wrote: »

...
After all, its not as if you plan to plonk a burger van on it or set up a Travellers' site (although there's an idea?)

I like the way you think

keymon

davidmcn wrote: »

Can you give us the definitions of "Premises" and "Allocated Space"?

I cannot give you the literal description right now, but the Premises mention the apartment itself, with its elements (windows, etc) and market in red.

The Allocated Space refers to the Parking space itself, marked in blue, which a right to use is granted in the lease.

Maybe here is the catch, that I must sublet the Premises (flat) to dispose the right to park?