Deduction of title (Procedural steps for the grant of a lease or underlease)-FS

Question 1

What is the purpose of deduction of title in lease transactions?

Answer 1

To prove ownership of the freehold interest and demonstrate that the landlord has the legal authority to grant the lease.

Question 2

Who is responsible for deducing title in a lease transaction?

Answer 2

The freeholder/landlord—they must show that they hold good title to the land.

Question 3

Why is it important to check for mortgages during deduction of title?

Answer 3

Because mortgages may restrict alienation, meaning the freeholder may require lender consent before granting a lease.

Question 4

What is typically reviewed during deduction of title?

Answer 4

Land Registry entries, including title number, ownership, charges, and any restrictive covenants or notices on the register.

Question 5

What might a mortgage contain that affects granting a lease?

Answer 5

A restriction on granting leases without the prior written consent of the charge holder (typically a bank).

Question 6

What is meant by “alienation” in this context?

Answer 6

The ability of the landowner to transfer or lease their interest in the property to another party.

Question 7

What must the leaseholder (tenant) ensure before entering into the lease?

Answer 7

That the landlord has unencumbered authority or has obtained necessary consents, especially if a mortgage is present.

Question 8

What risk arises if lender consent is not obtained where required?

Answer 8

The lease could be rendered unenforceable or invalid, and the tenant may lose their lease rights.