With respect to conveyancing a lease, the landlord’s (hereafter referred as seller) solicitor shall require the same information that is required for sale of freehold land. In addition to them, he may also require details of the lease. The investigation process is also pretty much similar. The conveyancing solicitor acting on behalf of the seller should investigate the title and ensure that there exists a clear freehold title. He should also look for covenants and easements that are likely to affect the enjoyment of the property and may even bind the lease itself.
It should be checked if the terms of the original lease stipulate the need for the landlord’s express consent before the property is sub-let. The solicitor should also check for the expiry period of the term. When the sub-tenant (hereafter called buyer) finances the purchase through a mortgage, the lender requires that a minimum period of time should remain as residue so that the property remains as an adequate protection against the loan. A lease with a short length for its original term left to run may (unless it can be extended) be difficult to dispose. Once the title is inspected, the solicitor should draft the contract and submit the same to the buyer’s solicitor to seek his approval.
Photo courtesy: Jono Colliver
