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Monday 6th February 2017

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11:46 AM, 10th February 2017, About 5 years ago

Worried about underletting clause in lease

Thanks all for your responses. It doesn't look like the end of the world now!

Another thing which I didn't think relevant at first but might be now is that the current freeholder is quite new. The timeline is:

May 2016 - Current AST started - for 6 months initially, new tenant moved in. No demand from the then freeholder for fees or registration.
Aug 2016 - New freeholder took over.
Nov 2016 - Nov 2017 Current AST extended for 12 Months.

So, the old freeholder or their agent (which used to be the same as the mgt. co) never demanded any fees or demanded any need for me to register the AST. Although they were aware the apartment was/has been let:

e.g. - by sending building insurance docs to my letting estate agent on my request due to me letting it out...
- and by always use my contact details at my alternative address because I told them it is let out and I don't live there! That is how we kept in touch.

Again, worth saying too, there is nowhere in the lease which requires consent or prohibits renting it out as a whole - just a clause about registering.

So I am guessing (sorry I am no expert) that this is slightly more favourable too because since the new freeholder took over and there has been no new AST started since then (only an extension of one which was already running when they took on the freehold of the block), even less need to register it with them?

So...If my tenant moves out at the end of his AST and I decide to start another AST with a new tenant, then maybe I should review the need to register then?

Finally, on another forum someone said that because the registration clause came under a section entitled "disposals", an AST wouldn't be relevant in that context either (i.e. disposals are only where the lease ownership actually changes)... I'm not sure I understand this or if it is right....

Sorry for the lengthy response.... steep learning curve this. Any further commentary appreciated.... Read More