This note is therefore a practical approach for E & W using 1st and 2nd principles and therefore individual situations may prove the exception.
As leases are often unique this to help you understand your lease and what to do.
1 No matter how you think it should be or that you shouldn’t need permission for something you own, there is only one way “ what the lease says”
2 Your idea of reasonable- time conditions and costs- usually aren’t.
3 LL and MA responses are often just as wrong and some exploit the opportunity
4 The average LA wont have a clue about anything of this and don’t worry no problem are just the usual BS
5 Start the process immediately don’t wait till later that way documents are altered and ready and you the LA and T know what they need to do when the T is found.
Mortgage Consent : Check your T & Cs on consent.
Management matters: At the very least you need to provide
-Your new contact info and tenancy length, and ideally T contact info for emergencies eg a flood
-Never rely on tenants to pass on paperwork
-Diarise dates for bills etc and when you don’t get them ask
Consent and Notification: there are 2 parts to this process and may involve more than one party.
Consent and Deemed Consent: The principle requirements for consent are
-set out in the lease
-Set out in the LLs requirements as long as they can be reasonably inferred from the lease
-Statutory control Are limited in dealing with them in a reasonable time from 1 to 4 weeks depending on the complexity, yes not overnight, under the LTA 1988 and they can charge a fee for consents under the LTA 1927 even if the lease is silent
These come in different forms and while some are standard some are unique and badly worded they fall into the flowing broad types
-no requirement or a partial restriction eg not to underlet part
-a simple notification and sometimes sending in copy documents
-deemed consent eg allowing lettings under x years under a particular type of tenancy
-very specific terms and conditions
- requirement for the tenancy document to be approved and worded in certain way
-may require a separate deed between your LL and the T
3 important things to understand here
1 LL or MA responses are often standard and may not apply
2 The more complex the requirement the more time it will take
You must therefore always
3 Read the lease immediately you decide to let- the answer may be in several places so read it all.
More than One Party- this applies to Notices too-a lease will have several parties and leads to you dealing with more than one person and you may get conflicting requirements- having done 3 above you will know who is wrong.
Typically consent is given by the
- person who granted the lease
- a third party to the lease who deals with these eg an RMC
- a statutory appointee eg an RTM or LVT appointed Manager
It is important in consents to ensure that when dealing with a representative such a managing agent or solicitor that the consent is given on behalf of the above. Unless they are a party to the lease, they cannot give consent themselves, only as an agent on the LLs behalf, and therefore this binds the LL if agents change or freeholds/head leases are sold.
Common, but mistaken practice, is that a consent is asked for each let but the lease or the LLs requirements may not need that. Consent can therefore be sought in whole or in principle that you can let on a certain basis and need then only notify the LL when the let is complete.
Many agents will give global consents and therefore the above is especially important as they are long term be binding in the future on a new Landlord; they may be financially attractive.
This is why each lease must be scrutinised to see what is required from whom, how long it will take, and who else needs to be told.
Holding Over: While a new statutory periodic tenancy starts at the end of the contract it is important that when seeking consent and notices to ensure that you add that it includes “ any statutory continuation of the tenancy” to dissuade request for consent and new fees. If you grant a new tenancy then it is a new letting and a new consent may be required.
Watch out for
- some leases only allow letting for x out of y years
- LL and MA are date driven when there is no end date they will issue reminders just respond that is a statutory periodic tenancy terminable on 2 months notice
Consent T & C
Basic match of L and T terms
Even if the lease makes no real requirements it is important that your bog standard tenancy mirrors the lease. While it is broadly comparable glaring omission can find you “in trouble” with the LL but your T has no requirement in their Tenancy.
This often concerns limitations on noise pets and specific behaviours such as use of common areas and facilities and can be as small as refuse out times, not leaving items such as bikes shoes and prams in the hallways or not keeping chickens and rabbits, and the all time favourite banging up a satellite dish.
Specific Requirements
These vary from simple steps to specific licences prepared by solicitors and approval of the references for the tenants and even a separate contract, a deed, to follow the rules in the lease between your LL and the T.
Understanding the lease will allow you to establish whether the lease requires such a detailed consent, and if not argue if they are unreasonable. Unfortunately where a lease is broadly worded to require that no letting without prior consent, such detailed steps are still reasonable.
Leases often state that consent cannot be unreasonably withheld ( and if they don’t it still applies under the LTA 1927) this really involves conditions and requirements that are inconsistent with common practice or the lease, not what you deem unreasonable. As properties are infinitely variable what is unreasonable can vary considerably and normally involve cases where holiday corporate local authority or student ( even a case of no disabled as we don’t want a ramp) lets are declined or exceptional requirements eg personal guarantees or deposits are sought.
It is therefore if the restrictions are lawful and if your lease and property would reasonably call for them.
Tied into this is timescale and as explained by 7 to 28 days depending on complexity.
Much is said about certain Agents and Landlords but we wary of the Residents Committee who while less likely to charge silly fees are often those that impose wild and daft conditions and have no little sense of urgency, and lack the skill and awareness to deal with the complex consents.
Leases often restrict the residents to particular groups such as one family and not sharers, so it is important to again understand the lease and see if this restrictions exist and if that particular wording is in fact enforceable.
Deeds of Covenant And tenancy Riders
As explained the rules of your lease need to match the tenants and in some cases it is required that the T include a rider that the T will abide by those rules or they have to enter into a specific Deed.
You can now see that the bog standard tenancy from the internet retailers or the Agent won’t work, can get you in trouble, and need careful amendment at the earliest stage especially in detailed consents.
Be aware that these are often poorly worded and require the T to pay GR SC and repairs, even though these are wholly or partly statute barred. It is important therefore to delete any references to this and restrict it terms which could be enforced. In practice few do and rely on those limitations though they are at peril of the time and costs of doing so.
Fees
This is the biggest source of argument but they are a necessary evil as the LL and MA costs of dealing with consents should be paid for by you not shared by everyone as that is only fair.
Even if the lease is silent on costs consents costs are allowed to be charged under LTA 1927, but not notice fees, and must be reasonable and are protected under CLRA 2002, the LVT can determine them, and they must be work that is required under the lease. As above standard responses are often wrong. Check them against YOUR lease.
Check against double vatting where a LL asks for their costs inc Vat which include a solicitors and agents costs which inc VAT
Review to who fees are actually due under the lease- broadly worded leases will allow for a variety of costs while more restricted or qualified wordings will actually help you.
Notices
As a final reminder if you have a lease with several parties such as a FH who charges Rent but you deal with the RMC and the agent, the FH needs to be told too.
Unless the lease says so there is no fee due to them so its important to understand the lease when contacting them and pre-empting any request for fees.
Fees are set out in the lease but do note that there is no statutory authority for costs for notices nor are they under the control of the LVT.
It is therefore common to load notice fees to offset reductions in consent cost. It is arguable that if consent to a specific letting is given that the work and need for notice is questionable, however, as daft as it may sound the notice fee is still due.
Here the wording of the lease as to who gets notice is important. An agent or solicitor or agent may deal with the notices and ask for X plus VAT. If a lease requires that notice is given on the LL, who is not Vat registered, the fee is due to them, so do not pay the VAT, and ensure the payment is to them as agents for and it is receipted accordingly.
As leases are often unique this to help you understand your lease and what to do.
1 No matter how you think it should be or that you shouldn’t need permission for something you own, there is only one way “ what the lease says”
2 Your idea of reasonable- time conditions and costs- usually aren’t.
3 LL and MA responses are often just as wrong and some exploit the opportunity
4 The average LA wont have a clue about anything of this and don’t worry no problem are just the usual BS
5 Start the process immediately don’t wait till later that way documents are altered and ready and you the LA and T know what they need to do when the T is found.
Mortgage Consent : Check your T & Cs on consent.
Management matters: At the very least you need to provide
-Your new contact info and tenancy length, and ideally T contact info for emergencies eg a flood
-Never rely on tenants to pass on paperwork
-Diarise dates for bills etc and when you don’t get them ask
Consent and Notification: there are 2 parts to this process and may involve more than one party.
Consent and Deemed Consent: The principle requirements for consent are
-set out in the lease
-Set out in the LLs requirements as long as they can be reasonably inferred from the lease
-Statutory control Are limited in dealing with them in a reasonable time from 1 to 4 weeks depending on the complexity, yes not overnight, under the LTA 1988 and they can charge a fee for consents under the LTA 1927 even if the lease is silent
These come in different forms and while some are standard some are unique and badly worded they fall into the flowing broad types
-no requirement or a partial restriction eg not to underlet part
-a simple notification and sometimes sending in copy documents
-deemed consent eg allowing lettings under x years under a particular type of tenancy
-very specific terms and conditions
- requirement for the tenancy document to be approved and worded in certain way
-may require a separate deed between your LL and the T
3 important things to understand here
1 LL or MA responses are often standard and may not apply
2 The more complex the requirement the more time it will take
You must therefore always
3 Read the lease immediately you decide to let- the answer may be in several places so read it all.
More than One Party- this applies to Notices too-a lease will have several parties and leads to you dealing with more than one person and you may get conflicting requirements- having done 3 above you will know who is wrong.
Typically consent is given by the
- person who granted the lease
- a third party to the lease who deals with these eg an RMC
- a statutory appointee eg an RTM or LVT appointed Manager
It is important in consents to ensure that when dealing with a representative such a managing agent or solicitor that the consent is given on behalf of the above. Unless they are a party to the lease, they cannot give consent themselves, only as an agent on the LLs behalf, and therefore this binds the LL if agents change or freeholds/head leases are sold.
Common, but mistaken practice, is that a consent is asked for each let but the lease or the LLs requirements may not need that. Consent can therefore be sought in whole or in principle that you can let on a certain basis and need then only notify the LL when the let is complete.
Many agents will give global consents and therefore the above is especially important as they are long term be binding in the future on a new Landlord; they may be financially attractive.
This is why each lease must be scrutinised to see what is required from whom, how long it will take, and who else needs to be told.
Holding Over: While a new statutory periodic tenancy starts at the end of the contract it is important that when seeking consent and notices to ensure that you add that it includes “ any statutory continuation of the tenancy” to dissuade request for consent and new fees. If you grant a new tenancy then it is a new letting and a new consent may be required.
Watch out for
- some leases only allow letting for x out of y years
- LL and MA are date driven when there is no end date they will issue reminders just respond that is a statutory periodic tenancy terminable on 2 months notice
Consent T & C
Basic match of L and T terms
Even if the lease makes no real requirements it is important that your bog standard tenancy mirrors the lease. While it is broadly comparable glaring omission can find you “in trouble” with the LL but your T has no requirement in their Tenancy.
This often concerns limitations on noise pets and specific behaviours such as use of common areas and facilities and can be as small as refuse out times, not leaving items such as bikes shoes and prams in the hallways or not keeping chickens and rabbits, and the all time favourite banging up a satellite dish.
Specific Requirements
These vary from simple steps to specific licences prepared by solicitors and approval of the references for the tenants and even a separate contract, a deed, to follow the rules in the lease between your LL and the T.
Understanding the lease will allow you to establish whether the lease requires such a detailed consent, and if not argue if they are unreasonable. Unfortunately where a lease is broadly worded to require that no letting without prior consent, such detailed steps are still reasonable.
Leases often state that consent cannot be unreasonably withheld ( and if they don’t it still applies under the LTA 1927) this really involves conditions and requirements that are inconsistent with common practice or the lease, not what you deem unreasonable. As properties are infinitely variable what is unreasonable can vary considerably and normally involve cases where holiday corporate local authority or student ( even a case of no disabled as we don’t want a ramp) lets are declined or exceptional requirements eg personal guarantees or deposits are sought.
It is therefore if the restrictions are lawful and if your lease and property would reasonably call for them.
Tied into this is timescale and as explained by 7 to 28 days depending on complexity.
Much is said about certain Agents and Landlords but we wary of the Residents Committee who while less likely to charge silly fees are often those that impose wild and daft conditions and have no little sense of urgency, and lack the skill and awareness to deal with the complex consents.
Leases often restrict the residents to particular groups such as one family and not sharers, so it is important to again understand the lease and see if this restrictions exist and if that particular wording is in fact enforceable.
Deeds of Covenant And tenancy Riders
As explained the rules of your lease need to match the tenants and in some cases it is required that the T include a rider that the T will abide by those rules or they have to enter into a specific Deed.
You can now see that the bog standard tenancy from the internet retailers or the Agent won’t work, can get you in trouble, and need careful amendment at the earliest stage especially in detailed consents.
Be aware that these are often poorly worded and require the T to pay GR SC and repairs, even though these are wholly or partly statute barred. It is important therefore to delete any references to this and restrict it terms which could be enforced. In practice few do and rely on those limitations though they are at peril of the time and costs of doing so.
Fees
This is the biggest source of argument but they are a necessary evil as the LL and MA costs of dealing with consents should be paid for by you not shared by everyone as that is only fair.
Even if the lease is silent on costs consents costs are allowed to be charged under LTA 1927, but not notice fees, and must be reasonable and are protected under CLRA 2002, the LVT can determine them, and they must be work that is required under the lease. As above standard responses are often wrong. Check them against YOUR lease.
Check against double vatting where a LL asks for their costs inc Vat which include a solicitors and agents costs which inc VAT
Review to who fees are actually due under the lease- broadly worded leases will allow for a variety of costs while more restricted or qualified wordings will actually help you.
Notices
As a final reminder if you have a lease with several parties such as a FH who charges Rent but you deal with the RMC and the agent, the FH needs to be told too.
Unless the lease says so there is no fee due to them so its important to understand the lease when contacting them and pre-empting any request for fees.
Fees are set out in the lease but do note that there is no statutory authority for costs for notices nor are they under the control of the LVT.
It is therefore common to load notice fees to offset reductions in consent cost. It is arguable that if consent to a specific letting is given that the work and need for notice is questionable, however, as daft as it may sound the notice fee is still due.
Here the wording of the lease as to who gets notice is important. An agent or solicitor or agent may deal with the notices and ask for X plus VAT. If a lease requires that notice is given on the LL, who is not Vat registered, the fee is due to them, so do not pay the VAT, and ensure the payment is to them as agents for and it is receipted accordingly.