Splitting One Leasehold Flat into Two

Aurora_Mirror

I own a very large leasehold flat in London. Doing my sums suggests that it would now be considerably mor elucrative to split it into two one bed flats, which would require some partition walls and the installation of one kitchen. No changes are required outside of my own demised areas.


My (very vague) lease is silent on erecting and demolishing internal walls (I have tested this before). As for the kitchen, I am not sure (it would depend if that counts as a 'structural alteration').


I would though I am pretty such require the landlords permission, even if only to split the leases. My questions:

1. Is the landlords permission always required to split a lease? (even if no other building consents are needed)

2. If so, can he simply refuse, or name whatever sum he likes? (I don't know if this is relevant, but there is a clause in my lease about landlord consent for internal changes not being 'unreasonably withheld' )

3. Would council planning permission be required to split a lease in this way and create two leases out of one?

Thanks for any advice!


Aurora
X

SmashedAvacado

Start with planning permission which is not the lease, but something you will need to do this.

but also the lease covenants relevant would be more than just the alterations clause, this might include the user clause (one single dwelling), the alienation clause (assignment or underletting of part), the planning clause (not to apply for planning).

G_M

Read the lease again. Carefully.


Almost bound to prohibit this, or if not, to require the freeholder's consent (which would come at a [considerable?] price.

AdrianC

You want to split one flat into two... and you think this can be done without the leaseholder's involvement.

Just a couple of minor questions...
1. What do you think's going to happen about the service charge etc?
2. How are the occupants going to get into this new flat, given that there's only one door from the common areas, and only one buzzer at the front door?

Remember - the landlord owns the structure of the building, and all the common areas. The leaseholder only owns a time-limited right to live within the walls of that one portion of the building.

davidmcn

You (generally speaking) will always need planning consent to create additional dwellings. So assuming this isn't a unique size of flat in the area, has anybody else done (or tried) something similar before?

D_M_E

Don't forget to also factor in the costs of providing new, separate meters and supplies for water, energy, phone etc as well as the potentially expensive costs listed by others above.

Also look at how and where a door to access the second property would be situated - in a supporting wall, ease of access etc.

eddddy

Realistically, your lease will almost certainly not allow this.

Therefore, you would have to negotiate with your freeholder to get agreement.

And unless the freeholder is completely daft, they will want you to pay them a very significant chunk of your potential profit, as part of the agreement.


So you need to think through your tactics:

• Do you agree terms with freeholder first (and incur legal fees) before applying for planning (which may be refused)

• Or do you apply for planning first (and incur fees), and then negotiate with your freeholder

Aurora_Mirror

Thanks all for comments- really helpful. Yes, there are of course the usual problems with aportionment of utilities and service charges that would arise with the proposal. But none that could not be overcome and the economies of the project remain good. The freeholder will of course want his pound of flesh, but at the same time, if he demands much and stops it happening, he doesn't get anything.

It seems to me the important thing to do is to take legal advice on how strong a ground I am on with the lease. It is extremely vague, but I will see if I can find anything there that stops me.

G_M

https://www.lease-advice.org/advice-guide/understanding-lease/