© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
© 2025 News On The Block. All rights reserved.
News on the Block is a trading name of Premier Property Media Ltd.
QUESTION
In June 2015 and as freeholder of the property in question, I received a letter from a mortgage lendor asking for confirmation that any notice of transfer should come to me and also asking what my fee would be. When I explored further it transpired that a flat which was jointly owned by two individuals was to be remortgaged and placed in the name of just one of the individuals. There were already several breaches of covenant in existence – such as arrears of ground rent, denial of access for inspection, failure to send me a copy of the buildings insurance policy and failure to send me details of their subletting etc. I informed the mortgage lendor of these breaches and stated that I would not be prepared to receive any notice of transfer or consent to any assignment under the circumstances. Through July and August 2015 there was a flurry of letters from the lessees’ solicitor – during which time some of the breaches were resolved. Some of the breaches remain to the present day however e.g. the buildings insurance policy and the subletting details are still outstanding. There was then a long period of silence until January 2016 when I received an email from the lessee enquiring about the cost of purchasing the freehold informally. The lessee went further to state that if we could not reach an informal agreement for the freehold, that he would seek to buy the freehold through the formal route of collective enfranchisement. I have not responded to this enquiry.
Instead, I downloaded the title register for the flat in question and (as I suspected) the lessee has gone behind my back and effected a transfer/assignment of the flat. The title register reads very differently from the way it read previously. The flat has been transferred into the name of one of the individuals and the lendor has changed. This occurred in October 2015 – without my knowledge or consent and I have not been sent a notice of the assignment. What are my options under the circumstances?
ANSWER
Your query relates to two issues: firstly, the assignment of the flat in question without consent; and secondly, without notice subsequently being served. Both are in reference to a factual matrix that includes various breaches of lease by the lessee, some of which persist. The first point can be dealt with concisely as, having read your lease, the lessee was under no obligation to obtain your consent prior to assigning the lease. Accordingly, there are no remedies available in this regard. The second point is of more interest. The refusal to endorse a notice of transfer is perfectly reasonable on the basis that you will accept the same upon the remedy by the lessee of the breached covenants. You state that some of the breaches have now been resolved, meaning the refusal to accept the notice was partially successful, but breaches relating to the failure by the tenant to provide the buildings insurance policy and details of the underletting remain. The covenant relating to the provision of the insurance policy requires the lessee to insure the flat in the joint names of the lessor and the lessee and to provide a copy to the landlord upon demand. It is uncertain from your query as to whether you have demanded a copy of this from the lessee. If not, this needs to be done in writing with such evidence retained for enforcement purposes, if ever required. If you have requested a copy of the insurance policy, an action for breach of covenant in the First-tier Tribunal (Property Chamber) or County Court is available as a remedy to you with, if necessary, the threat of forfeiture as a subsequent option. In terms of the lessee’s failure to provide details of the subletting, there is a clear obligation for details of the underletting to be provided to the lessor’s solicitors within 21 days of being entered into together with payment of a fee. Again, failure to provide the said details amounts to a breach of covenant and remedial action can be taken as above.
In this case it would be important for you to obtain evidence that a copy of the insurance policy has been demanded and not received and specific evidence as to how you know that the property is being sublet.
Phil Parkinson, Associate Director at JB Leitch who has specialist expertise in breach of covenant matters.