16561426
Description
| Question | Answer |
| Explain the obligations that are place on the landlord with regard to obtaining consents and/or notification in relation to the -Freeholder -Head Lessor -Insurer -Mortgage | 1 |
| What is the Commonhold and Leasehold Reform Act 2002 (CLRA)? | It makes it harder for a lessor to repossess the property from the lessee due to a breach. Section 168 of CLRA stipulates that a landlord of a long lease cannot serve a section 146 notice unless certain conditions have been satisfied. The lessor to have applied to the First-Tier Tribunal (FTT) and that the FTT has found the lessee culpable. |
| A potential landlord wants to let out their leasehold flat in a 1930s purpose-built block. The flat is very large and the landlord is explaining their intention to knock through a wall to create a good-size living area, which would make the property very to let. As their agent what advice do you give? | As the landlord has a lease, they have bought the right to exclusive As the landlord has a lease, they have bought the right to exclusive possession of that flat for the term of the lease. However, the actual fabric of the property does not technically belong to them, and it is very likely that the head lease will contain a covenant stipulating that consent would have to be obtained from the freeholder to make any structural or physical changes to the property. In addition, there may be restrictions on renting the flat, and they should also ensure that they comply with any requirements in relation to this. Finally, you would advise them that the applicant should be given a copy of the lease before they sign the tenancy agreement. |
| A landlord obtains building insurance but doesn't think they need contents insurance because the property is unfurnished. What should an agent advise the landlord to check? | The agent should advise the landlord to check that the buildings insurance has public liability cover. It is more usual for the public liability cover to be included in the contents insurance rather than the buildings insurance. If there was no such cover in place, then the landlord should be advised to take out additional public liability insurance. |
| A potential landlord comes into the office and says that they are thinking of buying a property to let out. They have a problem in that the buy-to-let mortgages require a larger deposit than if they were buying a property to live in, so they are considering taking out a mortgage as if they would be living there and then renting it out. What would be your advice in this situation? | You should advise your potential client that deliberately taking out a mortgage for owner/occupancy, with the sole intention of renting the property out, could result in prosecution for fraud. In addition, the mortgage company could demand the immediate repayment of the loan, or seize the property. |
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