Question 1

Leaseholders with Tenants

Accepted Answer

Q: We are about to update our lease that we think is rather outdated and wondered if you had any ideas, with self-managing flats of a similar set up to ours, shareholder/freeholders with all owners having their own front doors and no shared hallways. Primarily we wish to ensure that our leaseholders that have tenants abide by the rules and regulations and that in turn, they enforce such rules and regs as binding, whether by the lease, or if you think necessary, a separate document signed by leaseholders to be held by the association?. Most complaints and work revolves around these lets. We want to ensure we do not incur any legal charges if any tenants breach the terms of their contract with the owner and that the owner becomes totally liable for them. FPRA Hon Consultant Shabnam Al-Khan replies: There is quite a lot to consider and no simple answer. Essentially, you need to engage a solicitor to advise and prepare a new draft. This should be straightforward as an experienced solicitor will have template lease documents which can be used and simply rolled out to each flat. Firstly, they will need to ensure the freehold company has authority to vary the leases. Alternatively. if all the leaseholders and the company agree to vary the lease to effectively have a brand new lease this can be done. The original leases will need to be surrendered and new leases granted to each leaseholder. This could be done in one document as a deed of surrender and lease. The current lease places an obligation on the leaseholder to repair and maintain their demised premises. The obligations extend to painting and decorating the interior surface of the demised premises. There are clauses regarding not to cause a nuisance or to use the flat only for residential purposes. The new lease clauses could be widened to extend these obligations to expressly include renting tenants. Although the existing lease is quite wide as it covers the obligation “not to permit” which goes further than the leaseholder simply causing a nuisance etc. The current lease does give certain rights to let out the property. These could be tightened to restrict particularly short term lets if of course this was agreed. The obligation to observe the regulations could be extended to cover renting tenants. The insurance obligations could be widened to ensure renting is covered by the insurance because of the additional risks. The extent of the demised premises can be made clearer. [Submitted February 2020]

Question 2

Leaseholders with Tenants

Accepted Answer

Q: We are about to update our lease that we think is rather outdated and wondered if you had any ideas, with self-managing flats of a similar set up to ours, shareholder/freeholders with all owners having their own front doors and no shared hallways. Primarily we wish to ensure that our leaseholders that have tenants abide by the rules and regulations and that in turn, they enforce such rules and regs as binding, whether by the lease, or if you think necessary, a separate document signed by leaseholders to be held by the association?. Most complaints and work revolves around these lets. We want to ensure we do not incur any legal charges if any tenants breach the terms of their contract with the owner and that the owner becomes totally liable for them. FPRA Hon Consultant Shabnam Al-Khan replies: There is quite a lot to consider and no simple answer. Essentially, you need to engage a solicitor to advise and prepare a new draft. This should be straightforward as an experienced solicitor will have template lease documents which can be used and simply rolled out to each flat. Firstly, they will need to ensure the freehold company has authority to vary the leases. Alternatively. if all the leaseholders and the company agree to vary the lease to effectively have a brand new lease this can be done. The original leases will need to be surrendered and new leases granted to each leaseholder. This could be done in one document as a deed of surrender and lease. The current lease places an obligation on the leaseholder to repair and maintain their demised premises. The obligations extend to painting and decorating the interior surface of the demised premises. There are clauses regarding not to cause a nuisance or to use the flat only for residential purposes. The new lease clauses could be widened to extend these obligations to expressly include renting tenants. Although the existing lease is quite wide as it covers the obligation “not to permit” which goes further than the leaseholder simply causing a nuisance etc. The current lease does give certain rights to let out the property. These could be tightened to restrict particularly short term lets if of course this was agreed. The obligation to observe the regulations could be extended to cover renting tenants. The insurance obligations could be widened to ensure renting is covered by the insurance because of the additional risks. The extent of the demised premises can be made clearer. [Submitted February 2020]

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