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Can I rent My Flat out to third parties?
Jonsunrise
Posts: 7 Forumite
Hi,
I have always assumed that I can rent my leasehold flat. A third party thinking of buying in the same block as me has very much questioned my understanding.
I own the flat outright and have looked at my lease. The paragraph which seems to deal with this has all the usual legal jargon, but at the end
of the day I think it means that I do have a right to rent it out. I would be grateful for any thoughts. I reproduce the paragraph below and
marked in bold the bits which I believe to be relevant:
"The Lessee HEARBY COVENANTS with the Lessor and separately with the Company (a) that the Lessee will not during the term hereby granted assign sub-let or part with the possession of the whole (save as herinafter metioned) or any part or parts of the demised premises but this covenant shall not prevent the assignment of the whole of the demised premises to an assignee who has acquired or agreed to acquire and become the registered holder beneficially for his own use of the Lessee's holding of shares in the Company nor shall this covenant prevent the Lessee from mortgaging or charging the premises hereby demised by way of legal charge or sub-demise to a mortgagee or chargee who has not acquired or agreed to acquire and become the holder of such shares as aforesaid and (b) that the Lessee will procure such assignee at his own expense to enter into a direct covenant with the Lessor and the Company and each of them to perform the covenants on the part of the Lessee contained in this present Lease including this present covenant."
Thanks.
J.S.
I have always assumed that I can rent my leasehold flat. A third party thinking of buying in the same block as me has very much questioned my understanding.
I own the flat outright and have looked at my lease. The paragraph which seems to deal with this has all the usual legal jargon, but at the end
of the day I think it means that I do have a right to rent it out. I would be grateful for any thoughts. I reproduce the paragraph below and
marked in bold the bits which I believe to be relevant:
"The Lessee HEARBY COVENANTS with the Lessor and separately with the Company (a) that the Lessee will not during the term hereby granted assign sub-let or part with the possession of the whole (save as herinafter metioned) or any part or parts of the demised premises but this covenant shall not prevent the assignment of the whole of the demised premises to an assignee who has acquired or agreed to acquire and become the registered holder beneficially for his own use of the Lessee's holding of shares in the Company nor shall this covenant prevent the Lessee from mortgaging or charging the premises hereby demised by way of legal charge or sub-demise to a mortgagee or chargee who has not acquired or agreed to acquire and become the holder of such shares as aforesaid and (b) that the Lessee will procure such assignee at his own expense to enter into a direct covenant with the Lessor and the Company and each of them to perform the covenants on the part of the Lessee contained in this present Lease including this present covenant."
Thanks.
J.S.
0
Comments
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Do you have a mortgage?I am not a cat (But my friend is)0
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You are planning to sublet, which is prohibited. You are not planning to Charge the property, which is allowed.Indeed, if you bought wih a mortgage you have already placed a Charge on the property.0
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As far as I understand this lease, you cannot rent your flat out. The lease says you cannot sub-let the property.
The final section deals with placing a charge on your property(not letting it out) and who is responsible for paying for the party that has the charge taking over the lease if they need to do so because the mortgage is not paid.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0
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