The information required by the conveyancing solicitor acting on behalf of the landlord is almost the same as information required from the seller in the case of a freehold transaction. This article discusses about the process of taking instructions from the client.
In addition to the above, the solicitor would also need information about issues such as the length of the term, the rent, responsibility in the case of repairs and insurance for the property and various other issues that are dealt in the lease itself.
Before proceeding with the case, the landlord should first inspect the landlord’s (his client) title to the property. This is to be done to ensure that the client has the authority to grant the lease and to anticipate any problems that may arise with the title. For instance, there could be a covenant in place
that prevents the use of the lease. He may also need to investigate the title to be able to draft a contract. Investigation is done in exactly the same manner as a conveyancing solicitor would conduct the investigation of a freehold transaction. Particular attention has to be paid to the mortgage of the property. When the property is subject to an existing mortgage, this will contain a provision that disallows a landlord from granting the property on lease. In such a case, the landlord (borrower) will have to obtain the express permission of the lender before granting the lease.
Drafting the Lease
The landlord’s solicitor drafts the lease that is then sent to the prospective tenant’s solicitor for negotiations and approvals. Sometimes, the lease contains a list of unusual demands, some of which are later mentioned.
Photo courtesy: Roger Wollstadt
