… the debt-chasing solicitors correspond with a buy-to-let investor who is barred from renting out his flat
LKP is not going to spend too much time on well resourced buy to let investors getting into a jam that their lawyers should have prevented, but this one is curious.
The purchasers bought a flat in Thornton Heath, Surrey, as an investment but have been informed by our old friends at JB Leitch that no subletting is permitted.
Here is the proposed solution from Andrew Bailey, at JB Leitch.
I refer to your recent conversation with my colleague XXX and your below email.
For the avoidance of doubt, my firm have been instructed on behalf of the Freeholder of the Property via their appointed agent, Leasehold Property Management Limited (“LPM”) in connection with a breach of lease pertaining to sub-letting of the Property of which you and XXX are the leasehold proprietors.
The lease in respect of the Property contains a complete prohibition regarding sub-letting at Clause 7 that states:
“THE Lessee hereby covenants with the Lessor and as a separate covenant with the Management Company (a) that the Lessee will not during the said term assign sub-let or part with the possession of the whole or any part or parts of the Demised premises…”
Please confirm in open correspondence that it is admitted that the Property is being sub-let as alleged.
Without prejudice to any action that my client may take concerning the breach of lease, my client will accept the following terms to remedy the breach:
1. You enter into a Deed of Variation with our client;
2. You pay consideration of £705.00;
3. There be a 50% increase of the current ground rent payable;
4. You pay an annual sub-letting fee of £100.00 plus VAT;
5. You pay LPM’s costs of £440.00 inclusive of VAT; and
6. You pay our client’s legal costs of £240.00 inclusive of VAT.
Should you fail to admit the breach or the above terms are unacceptable to you, please note that my client will issue proceedings in the County Court to seek a declaration that the Lease is in breach as a pre-requisite to forfeiture proceedings being instigated in respect of your leasehold interest in the Property.
I note that you are currently seeking advice from Lease in respect of your position.
Should I fail to hear from you within 14 days of the date of this correspondence, my client’s terms will be withdrawn and proceedings will be issued accordingly.
Andrew Bailey FCILEx
Chartered Legal Executive