Lease Flashcards
(24 cards)
Grant of a lease procedure: LL solicitor
prepare draft lease
(and agreement if needed)
deduce title and respond to queries
check lender will allow leases
answer pre-contract enquiries
obtain LL solicitor and send to TS
Grant of a lease procedure: TS solicitor
review draft lease / agreement and negotiate if needed
investigate title
raise pre-contract enquiries and searches
arrange for T to sign counterpart
pre-contract searches and enquiries in a lease
standard ones as you would for a freehold (local, drainage, chancel, environmental)
any optional too if needed
CPSE1 and CPSE 3 too which are lease specific
pre-completion in a lease
obtain signatures
money to be sent on completion (service charge eg, insurance)
pre completion searches
Completion statement -
what are the pre-completion searches
OS1 (whole)
OS2 (part)
OS3 (non registrable)
Completion and post completion in a lease
TS sends LLS money
agree to complete and date leases
send the original and counterpart lease to eachother
Post
Register if necessary
SDLT if necessary
What is the primary difference between the assignment of a lease for residential and commercial properties?
Residential is almost the same as a freehold transaction
Commercial often skips the exchange of contracts.
Assignment - What does the undertaking from the tenant’s solicitor cover?
The landlord’s solicitor/conveyancer costs, usually capped at a certain amount.
what is the LL consent to assign shown by?
The license to assign.
Assign: If there is exchange, who drafts the contract?
The tenant’s solicitor.
Assign: Who deduces title
Tenant solicitor
provides Official copies for leasehold title or the landlord’s title if the term is 7 years or less.
Assignee solicitor role in procedure of assignment
gets the Official copies for title
amends and reviews contract (LL not party to the contract)
imvestigate / searches
Assignment: What should be used if the lease is varied?
A deed of variation.
Assignment: What investigations of title/searches/enquiries does the assignee’s solicitor conduct?
Investigates title,
conducts CPSE1 enquiries, and CPSE4 = specific to assignment
The same searches as if buying a freehold.
Assignment: pre completion steps LLS / TS
LL provides copies of license to assign and signs
TS
sign license
prepare and send completion statement (with money due on completion- rent, service charge)
repsond to requisitions on title
T execute deed of assignment
Assignment: pre completion steps Assignee solicitor
Assignee sign license to assign
obtain funds needed to complete
raise requisitions on title
draft deed of assignment
Assignment: who signs
a) license of assign
b) deed of assignment
a) LL, tenant and assignee
b) Tenant and assignee
Underletting: key points
- interest not passed to under tenant entirely
- tenant responsible for obligations and rent
- LL cannot enforce covenants against UT
when is underletting a good idea?
- T not using all of the premises andcan underlet part of it
- They do not need the premises but may do in the future
- Unable to find a willing assignee
underletting: who has privity of contract and estate?
Privity of contract
- LL and tenant
- also tenant and under tenant
- NOT LL and undertenant
Privity of estate
- T and underT
nothing between LL and UT
underletting: How would a LL acquire privity of contract between him and the UT?
by asking the undertenant to sign a covenant between them
this makes the undertenant a party to the license to underlet (all 3 will be party to the agreement)
underletting procedure: two key documents
like granting a lease/assignment but also need:
license to underlet
draft underlease (and agreement if needed)
What must the tenant do after Assignment / underletting has occurred
send the LL a formal notice within 1 month stating it has been completed
What searches are lease specific?
CPSE4 -Assignment
CPSE3 - Lease
still do CPSE1
OS1/OS2/OS3 also still applies
