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Grant of lease: the pre-contract package

Grant of lease- the pre-contract packageThis article discusses the contents of the pre-contract package in a leasehold contract.

General principles

Generally, the landlord’s conveyancing solicitor is required to produce the following documents;

a)      Draft contract (when applicable)

b)      Draft lease

c)      Evidence of the freehold title

d)     Copies of appropriate planning consents

e)      Evidence to show that the lender approves of the property being let

When the protocol is used, the conveyancing solicitor shall use the same terms that would be applicable when the sale of the freehold is applicable. This includes providing the tenant’s solicitor with a PIF and an F&C as a part of the pre-contract package.

And in the case of a lease of a flat where a management company shall be providing the services, it is important to ensure that the company is incorporated, share certificates related to the company, and the company documents are prepared before the completion of the sale of the first flat. The pre-contract package should also include details of the company.

Energy performance certificates

With effect from 1st of October 2008, EPC’s or Energy Performance Certificates are required whenever a building is constructed, sold or rented out. This rule does not apply to temporary buildings that are intended to be used for less than 2 years. Generally, all EPC’s are valid for a period of 10 years from the date of issue, unless a new EPC is issued to replace the old one.

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