Reviewing a Lease

When does the Lease term become a problem?

• Less than 70 years

• Less than 80 years

• Less than 90 years

• Less than 60 years

When were Prescribed Clause Leases introduced?

• June 2006

• July 2007

• January 2008

• November 2005

What do you understand by the term Alienation

• Tenant can not underlet the property without the Landlord Consent

• Prohibits Aliens from the property

• Enforces the Tenant to pay an annual fee to the Landlord

• Forfeits the Lease if the Lessee becomes bankrupt

How would you proceed if you saw a Forfeiture in Bankruptcy Clause?

• Providing the client is happy proceed to Exchange

• Providing the client and Lender are happy proceed to Exchange

• Obtain Indemnity Insurance at the sellers expense and proceed to Exchange

• The Lease is defective and will need to be varied and Clause removed prior to Exchange

Do we need a Mutual Enforceability Clause in the Lease?

• Yes the Lenders insist on one

• Providing the client and lender are happy go ahead

• We need to see this Clause in the Lease for the Lease not to be defective

• Only if the responsibility for insurance, maintenance and repair falls on the Tenants

What is the purpose of a Deed of Covenant?

• Its just another way for the Landlord to make money

• Means the Lessee will observe and perform the covenants in the Lease

• Its the buyers agreement they consent to the Mortgage

• You can not extend the Lease term without one

Which of the below would be considered a Restrictive Covenant?

• Not at any time to keep animals or pets at the demised premises

• The right to subjacent, lateral support, shelter and protection

• To insure the building and common parts

• Right of access over the communal and common areas

Which of the below statements is a Right that benefits the property?

• Not to alter the Property without the Landlords consent

• Rights of Support, Protection and Shelter

• Not to keep pets at the property without the Landlord consent

• Not to sublet the property without the Landlords consent

Which of the below Ground Rent Clauses are unacceptable to a Mortgage Lender (select all that apply)?

• Ground escalating above
  £250 a year outside of Greater London

• Ground escalating above
  £1000 a year inside of Greater London

• Ground Rent greater than 0.5% of the property value

• If Ground Rent doubles less than every 20 years

• Ground Rent escalating below £250 outside of Greater London

How many days Notice does a lender require before a Landlord can start Forfeiture proceedings on the Lessee?

• 7 days

• 28 days

• 14 days

• 21 days