Underlet Covenant

houman1979

I bought a leasehold flat as a buy to let and got a mortgage on it.

At the time of conveyancing, my conveyancor told me that the there is no restriction on letting the flat to someone else as long as it is as a whole.

I let the property out and a new tenant moved in but yesterday I called the property's landlord managing agent and they confirmed that a permission is required to underlet. My conveyancor still believes that it is not the case.

Now, I am too frustrated as I did not know anything about these legal stuffs and I did as my conveyancor said. Now, what happens if I really needed a permission given the fact that the new tenant has moved in. Any big penalty or problem or I just need to get a permission in worst case scenario (if my conveyancor is wrong)?

Comms69

houman1979 wrote: »

I bought a leasehold flat as a buy to let and got a mortgage on it.

At the time of conveyancing, my conveyancor told me that the there is no restriction on letting the flat to someone else as long as it is as a whole.

I let the property out and a new tenant moved in but yesterday I called the property's landlord managing agent and they confirmed that a permission is required to underlet. My conveyancor still believes that it is not the case.

Now, I am too frustrated as I did not know anything about these legal stuffs and I did as my conveyancor said. Now, what happens if I really needed a permission given the fact that the new tenant has moved in. Any big penalty or problem or I just need to get a permission in worst case scenario (if my conveyancor is wrong)?

It depends what your lease says - I cant read it from here!


Usually there's a fee to pay to get permission.

Slithery

What does your lease say?

houman1979

I should type the whole part here which is not easy and the file is a low quality scan and I actually do not know where to look for it (it is 50 pages)!

Assume that I needed to get the permission but I did not because my conveyancor said so and so I let out the flat. What are the consequences?

Comms69

houman1979 wrote: »

I should type the whole part here which is not easy and the file is a low quality scan and I actually do not know where to look for it (it is 50 pages)!

Assume that I needed to get the permission but I did not because my conveyancor said so and so I let out the flat. What are the consequences?

Really don't know what you want us to say - IT DEPENDS ON YOUR LEASE.


The options might be to pay a fee and get permission, or ultimately there is possibility of them repossessing your lease (though to be clear that is extremely unlikely).

houman1979

I just contact the managing agent and they said the provision is a standard one that to underlet the whole property I should get a written permission which is not withheld unreasonably provided the whole property is let to one family.
I actually let the whole property to one family.

davidmcn

houman1979 wrote: »

I just contact the managing agent and they said the provision is a standard one that to underlet the whole property I should get a written permission which is not withheld unreasonably provided the whole property is let to one family.

But is that what your lease actually says?

houman1979

I found it after another call to the managing agent:
"Not to underlet the whole of the property without the previous consent in writing of the landlord which consent shall not be unreasonably withheld" it is subject to some conditions such as letting the whole property, no protected tenants, etc.

Also the next paragraph said:
"During the last seven yeas of the term not to assign underlet or part with the possession of the property without the previous consent in writing of the landlord which consent shall not be unreasonably withheld"

houman1979

any comment given the exact wording of the lease?

Comms69

No because none of that is relevant.


Have you actually (crazy I know...!!) asked for permission?

houman1979

No as my conveyancor said positively that you dont need a permission.

So you think also that no permission is required?