9:59 AM, 12th February 2024, About 2 weeks ago 3
Hello, I am in the middle of protracted litigation with my Residents Management Company. I have discovered lease assets such as garages have been sold between leaseholders on the estate in contravention of an Absolute prohibited Covenant.
The covenant says ‘Not any time to assign transfer sublet charge or part with possession or occupation of part only of the demised premises or to permit or suffer the same to be done.
The garages are clearly part of the demise of the flats as per the lease. In the past Deeds of variation and Licences have been issued by previous Boards approving the sale and purchase splitting the demise. Garages have also been sold under the radar of the Board and managing agents.
When the Board has found out it does nothing. Suffice to say there appears to be a large number of sales which have led to the service charge apportionments for individual flats [to which the garages form part of in deciding the apportionment] not being corrected or altered.
It now appears that to circumvent the lease covenants, the leases of the respective purchaser and seller have been surrendered and regranted to transfer the garage clearly with Board complicity. I understand that this may be a loophole bypassing the lease but it is legal?
The garages can now be found at Land Registry under a separate lease title. To me, it is like running a coach and horses through the lease with total disregard for any covenants when it suits the Board. This has led to what I believe to be serious financial mismanagement in respective of the Service charge apportionments, For example, some leases still show a garage on the lease with the relevant apportionment yet the garage was sold years before.
I am interested to hear from anyone who has experienced this?
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