One of the most common issues we encounter in the property management sector is how often the terms of a lease are overlooked.

In our experience, many disputes could have been avoided altogether by checking the lease at the outset.

What is a Lease?

A lease is a contract. It sets out the rights and obligations of the parties and governs their relationship throughout the term of the lease.

For ease, when we refer to a landlord, we also include Residential Management Companies and Right to Manage Companies unless we specifically distinguish between them.

A common misconception is that leaseholders own their flats outright and can do as they please. Equally, landlords can sometimes assume they can make decisions simply because they own the building. Neither position is correct.

The Rules

The lease is usually the starting point. It sets out the rules governing how the property can be used and managed, with legislation supplementing those provisions where necessary.

For example, where a lease contains an absolute prohibition against subletting, subletting the property may amount to a breach of covenant unless the lease has been formally varied or another legal exception applies.

Legislation can also affect how lease provisions operate. For instance, many leases contain forfeiture provisions allowing a landlord to forfeit the lease for unpaid ground rent or service charges. However, statutory requirements impose important conditions on the recovery and enforcement of those sums.

Final Thoughts

Think of a lease as the rulebook for the property.

You would not start playing Monopoly without at least glancing at the rules, so why buy or manage a leasehold property without understanding the lease?

You might be surprised by how often disputes arise simply because the lease has been overlooked or misunderstood.

Failing to comply with the terms of a lease can lead to breaches, disputes and, in some cases, enforcement action.

Remember to always check the lease or you can get us to check your lease by clicking here.