This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Terms of a lease

fitz
Posts:24
Joined:Wed Aug 06, 2008 3:11 pm
Terms of a lease

Postby fitz » Sun Oct 06, 2019 4:01 pm

I have recently become the freeholder of a small block of flats. The terms of the leases include a clause which states in respect each lessee,

“Not to assign underlet or part with the possession of any part or parts of the demised premises and not to underlet the whole of the demised premises”

The previous freeholder did not enforce this clause and over a period of years some of the flat owners have rented out their properties
Has a precedent been established which will prevent me as freeholder from now enforcing this term of the lease. And if I am entitled to enforce it what would be the necessary procedure to do so.

someone
Posts:696
Joined:Mon Feb 13, 2017 10:09 am

Re: Terms of a lease

Postby someone » Mon Oct 07, 2019 9:16 am

This is a legal question, not a tax question.

Absolute bans on subletting are rare in leases but can be enforced. Most have a 'not unreasonably withheld' landlords consent needed.

A majority of leaseholders could get the lease condition amended but not an individual.

The leaseholders could also try collective enfranchisement.

Is letting causing a problem - airbnb perhaps? A clause about 'residence for the use of a single family' also rules out commercial airbnb (as opposed to a single let once per year while the family are away on their holiday)

I am neither an accountant nor a lawyer!


Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”