14 June 2019 by

Selling or Subletting your Leasehold?

Are you looking to sell or sublet your leasehold property?

If you are then it is important that you are aware of the need to comply with certain provisions in your lease before and during your sale or let.

Selling or letting any property can be stressful enough but a leasehold property can create more stress as there is a need for additional thought and checks that are required under the terms of your lease.  To help your sale go through smoothly without any last minute hiccups, it is always worth being fully prepared and ensuring that you have, or are able to, comply with the terms of your lease.  Starting early and using a good solicitor is always a good idea.

The number one rule for leasehold properties is to always read the leaseDepending on what your lease says you may not be able to sell (or sublet) until you have put the relevant consents or deeds in place, so it’s always better to know in advance what is required of you.

What to look out for in your lease
  • Your lease may require you to obtain your landlord’s consent to the sale (which is usually referred to as an assignment in a lease).
  • It may also require your buyer to enter into a Deed of Covenant with a management company if there is one and also to serve notices on the landlord of the purchase. Bringing this to the buyer’s attention as soon as possible could help to avoid the last minute delays of tracking down a landlord to prepare the Deed of Covenant.

You may not be looking at selling your property but perhaps you are thinking of renting it out?

If so, you need to:

  • Ensure you have complied with the terms of your lease.
  • Check your lease actually allows you to sublet your property. Some leases may prohibit it entirely or, more likely, may require you to seek your landlord’s consent first. Sometimes, the lease may require your subtenant to enter into a Deed of Covenant with the landlord directly by way of a promise from them that they will comply with the terms of your lease.
What happens if you get it wrong?

Being in breach of your lease could result in your landlord being able to take action against you to potentially forfeit your lease and look to recover their costs for doing so from you.

If you are unsure whether you are complying with the terms of your lease please contact us on 0207 288 4700.

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