Procedures Granting a Lease

Question 1

What are the 3 main stages in the Granting of a Lease?

Answer 1

(1) Pre-completion
(2) Completion
(3) Post-completion

Question 2

Step (1) Pre-Completion

What are the 5 main stages of ‘Pre-Completion’?

Answer 2

(a) Deduction / Investigation of Title
(b) Mortgage Check
(c) Drafting Lease
(d) ‘Agreement for Lease’ (contract) (IF NEEDED)
(e) Execution of Lease

Question 3

Step (1) Pre-Completion

What are the 5 main stages of ‘Pre-Completion’?

Answer 3

(a) Deduction / Investigation of Title
(b) Mortgage Check
(c) Drafting Lease
(d) ‘Agreement for Lease’ (contract) (IF NEEDED)
(e) Execution of Lease

Question 4

Step (1) Pre-completion (a) Deduction / Investigation of Title.

Is it NECESSARY to ‘Deduce Title’ for:
(i) Lease > 7 years
(ii) Lease 7 years of <

Answer 4

(i) Recommended (NOT Necessary)
(ii) NECESSARY (without it T CANNOT obtain ‘Absolute Leasehold Title’ on registration)

Question 5

Step (1) (a) Deduction / Investigation of Title.

How can Title be Investigated if Freehold is:
(1) Registered Land
(2) Unregistered Land

Answer 5

(1) Official Copies
(2) Epitome / Good Root of Title

Question 6

Step (1) Pre-completion (b) Mortgage check.

What is the ‘Mortgage check’?

Answer 6

L check if Mortgage PERMITS Grant of Lease

Question 7

Step (1) Pre-completion (c) Drafting Lease.

Who normally Drafts the Lease?

Answer 7

Landlord’s solicitor

Question 8

Step (1) Pre-completion (d) Agreement for Lease (Contract).

An ‘Agreement for Lease’ can sometimes be made between L and T.

(1) What is an ‘AGREEMENT FOR LEASE’ used for?
(2) What is an example of this?
(3) What additional stage in the lease granting process will this add?

Answer 8

(1) Conditions must be met for COMPLETION to occur
(2) Planning permission
(3) EXCHANGE STAGE

Question 9

Step (1) Pre-completion (e) Execution of Lease.

(1) How many copies of the lease are prepared for this?
(2) What are the 2 stages of process?

Answer 9

(1) 2 Copies

(2)
(a) L executes their part
(b) T executes their part

Question 10

Step (2) Completion.

What are the 2 main steps on completion?

Answer 10

(a) Payment of ADVANCE RENT / ‘PREMIUM’ (if relevant)
(b) Executed Leases SWAPPED (i.e. L to T and T to L)

Question 11

Step (2) Completion (a) Payment of ADVANCE RENT / ‘PREMIUM’ (if relevant).

What is the ‘Advance Rent’?

Answer 11

Rent from COMPLETION DATE to NEXT RENT PAYMENT DATE (defined in lease)

Question 12

Step (3) Post-Completion.

What are 2 main Post-Completion Matters?

Answer 12

(1) Payment SDLT / LTT
(2) Registration of Lease

Question 13

Step (3) Post-Completion (a) Payment SDLT.

(1) When must SDLT be paid to HMRC?
(2) What 2 items will SDLT be paid on?

Answer 13

(1) Within 15 days FROM COMPLETION
(2)
(a) RENT
(b) ‘Premium’ (if paid)

Question 14

Step (3) Post-Completion (b) Registration of lease.

What MUST be done for Leases > 7 years (both registered & unregistered)?

Answer 14

Registered at LR as a SEPARATE TITLE (e.g. have their own Title number)

Question 15

Step (3) Post-Completion (b) Registration of lease.

For a Lease from (a) REGISTERED Land + (b) >3 y-7y

(1) MUST it be Registered?
(2) What can T CHOOSE to do?

Answer 15

(1) NO
(2) Can be VOLUNTARILY REGISTERED against L’s TITLE