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sub-let covenant

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  • sub-let covenant

    We are about to exchange on a flat that is leasehold with share of freehold and we have come up against a bit of a problem.

    The solicitor has highlighted an absolute covenant which would not allow us to sub-let part of the property. Having the ability to sub-let a room has always been a fairly essential part of us buying this property (at least for the first 6 months of moving in to the property anyway) we now find ourselves asking if we should continue with the sale if we are not allowed to sub-let.

    I know the property has been sub-let previously by the vendor. It would appear that the other freeholder has never raised the issue of the covenant and has even sub-let themselves in the past. The risk of getting any hassle are pretty slim and we would be absolutely ok to do the same.

    Our feelings are we should at least get consent from the other freehold to confirm they would be ok with this arrangement.

    Our solicitor has said that we 'could get the consent of the other freeholder but as the covenant is an absolute bar (i.e. no provision for consent) it would bind a third party in the event that the freehold was sold to a third party.' I.m guessing that means if someone else where to come into the equation the agreement would no longer stand?

    They have advised 'the correct approach is to vary the lease to allow for lodgers (either with or without the consent of the freeholder). This would require the co-operation of the other freeholder and legal costs would be incurred.' I'm presuming this could add a few more weeks and an eye watering amount of money added to the bill.

    Please help don't know what to do.......
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