Guide To Residential Or Commercial Leases On UK Properties
So youre leasing a property. Why pay for commercial property services when youve done it all before?
After all a lease is a lease is a lease isnt it?
Well sadly not. No two leases are the same so you must protect your commercial interests and nail down the rights and responsibilities for both parties.
The landlords responsibilities are likely to include:
Maintenance and repairs of the building
Management of common areas such as grounds staircases and hallways
Insurance of the building
While the leaseholders obligations may include:
Keeping the inside of the property in good order
Behaving in a neighbourly manner
Payment for services eg maintenance and repairs building insurance etc
Payment of ground rent
Payments into a reserve fund for any scheduled major works eg external decoration
Restrictions on certain activities without the landlords consent
As a guiding principle the landlord is not obliged to provide any service that is not specified in the lease and the leaseholder is not obliged to pay for anything that is not specified in the lease.
How confident are you that your property lease really covers all these angles? If you leave room for doubt you may well regret it further down the line!
And when you’re taking up a lease…
Leasehold contracts are designed primarily to protect the commercial interests of the landlord.
Which means its up to you the leaseholder to challenge the terms that dont suit you. And as the landlord has an army of commercial property consultants at his disposal hes probably not too worried about that.
If scouring acres of small print is your idea of fun then go ahead. Enjoy! But if you prefer to live your life and leave the mindnumbing mumbojumbo to the professionals you really should talk to your property consultants.
Its vital that you understand your lease conditions before you buy. These are questions like:
Will you have to pay ground rent?
What service costs are you expected to pay?
Will you have to pay into a reserve fund for future building works?
Is the property subject to conditions of use eg commercial or residential restrictions?
What obligations does the landlord accept?
With so much at stake you cant afford any grey areas. So ask your property consultant to look through your contract and pick out all the gremlins.
About the writer: Sam Hawking runs Sam Hawking Co a dynamic company specialising in conveyancing and UK property law for residential commercial and agricultural clients. Licensed Conveyancer Sam established the company in Port Talbot in September 2006 and has quickly achieved a strong reputation as a conveyancing solicitor in South Wales. Join Sam’s website at: http://www.propertysolicitorconveyancing.co.uk
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