The Leasehold Conveyance Flashcards
what are the documents that make up a lease?
the agreement for the lease (contract exchanged between parties)
the lease deed - completed on completion day
both documents are sent to the land registry to be registered
what is the grant of a lease and what are the key procedural transaction steps?
the landlord carves a leasehold estate out of their freehold estate
1) deduction and investigation of title of the freehold
2)consent of the lender if landlord has mortgage
3) report on title
4) the landlord’s solicitor drafts agreement for the lease. one of the law society formulae can be used for exchange by phone. when the lease contract is executed, the lease is deed annexed
5)requisitions on title and other pre-completion steps
6) Completion: lease deed is signed and dated T will likely pay a premium upfront
7) lease to be registered If it exceeds 7 years
8) SDLT/LTT will need to be paid (on the premium and upfront rent)
what requirements will a lender have for providing a mortgage for a lease ?
consent of landlords lender
adequate length of lease (can’t be less than 60 years)
adequate insurance provisions in the lease
Landlord has good title of freehold
adequate repair covenants in respect of the common parts of the building + actual premises T is renting
forfeiture is not allowed if T becomes bankrupt for residential leases
Notice of the mortgage must be given to landlord after completion - which L will counter-sign and hand back to T.
what is an assignment of lease and what are the procedural steps?
the tenant sells their remaining term in the lease to another party who then becomes the immediate tenant of the landlord
what is a sublease and what is the procedure for granting one?
where a tenant grants a lease out of their own lease. (called the sublease)
what are the key terms of a licence to assign or sublet
1) Approval of the landlord
2) Assignment fee
3) Release of liability
4) representations and warranties
5) indemnifications
