Questions about buying long leasehold apartment

msminni

Hi everyone,

I would appreciate some advice as I'm new to this.
I'm considering buying an apartment in an apartment block dating to the late 70s. It has a long leasehold but I'm a little unsure what this actually means in terms of who carries what obligation and what I can do with it. I also found out it comes (unfortunately) with restrictions, and there I equally have a hard time figuring out what these will mean in practice.
These are the specific issues:

1. One of the restrictions is 'not to assign, underlet or part with the possession of a part of the premises' but that it 'does not operate to prohibit alienation of the entire of the premises to an Assignee or Lessee'.
> I'm thoroughly confused here: does it allow me to rent out the apartment in the future or but not to rent out a room?

The next two points go together:
2. It reads that the flat has to be kept in good repair and that the Lessor (person holding the ground rights?) must be provided access to check on this and can request me to repair things following, but it also says I can't make any structural alteration.
3. In addition it reads that I can't 'cut, maim, alter or injure any of the principle bearing walls or timbers ... or the wiring plumbing pipes or cables of any kind'.
> so my question is what is excluded by this? If I buy the apartment I would like to insulate it (not up to scratch now), but is that allowed? I imagine I would have to dry-line the walls, which would appear to be precluded? And am I, as the owner of the leasehold, entitled/responsible for the windows, boiler, etc? Or is fixing any of that precluded too? same question applies to insulating the roof I imagine.

I would appear it all comes down to me not actually owning the place to begin with, and if that's the case I'd rather hold out for a less restrictive arrangement. Any advice?

odds_on

msminni wrote: »

Hi everyone,

I would appreciate some advice as I'm new to this.
I'm considering buying an apartment in an apartment block dating to the late 70s. It has a long leasehold but I'm a little unsure what this actually means in terms of who carries what obligation and what I can do with it. I also found out it comes (unfortunately) with restrictions, and there I equally have a hard time figuring out what these will mean in practice.
These are the specific issues:

1. One of the restrictions is 'not to assign, underlet or part with the possession of a part of the premises' but that it 'does not operate to prohibit alienation of the entire of the premises to an Assignee or Lessee'.
> I'm thoroughly confused here: does it allow me to rent out the apartment in the future or but not to rent out a room?

The next two points go together:
2. It reads that the flat has to be kept in good repair and that the Lessor (person holding the ground rights?) must be provided access to check on this and can request me to repair things following, but it also says I can't make any structural alteration.
3. In addition it reads that I can't 'cut, maim, alter or injure any of the principle bearing walls or timbers ... or the wiring plumbing pipes or cables of any kind'.
> so my question is what is excluded by this? If I buy the apartment I would like to insulate it (not up to scratch now), but is that allowed? I imagine I would have to dry-line the walls, which would appear to be precluded? And am I, as the owner of the leasehold, entitled/responsible for the windows, boiler, etc? Or is fixing any of that precluded too? same question applies to insulating the roof I imagine.

I would appear it all comes down to me not actually owning the place to begin with, and if that's the case I'd rather hold out for a less restrictive arrangement. Any advice?

When you buy a long leasehold property, you are only buying the right to live in the apartment. The management company (made up of the owners of the apartments) own the land on which the the structure is built. They own the structure in its entirety; you lease the apartment from the management company and the lease probably is for something like 999 years from the date the apartments were built (I can't see the block still being up and running in 100 years time, let alone 999 years).

Basically, you are responsible for the upkeep of the interior of the apartment, the decorating and any fixtures fittings such as boilers, immersions lights etc., as well as your own property (kitchen appliances etc),

The management company is responsible for the building itself, walls, roof and any utilities as far as your apartment. If a fuse blows within the apartment, you (or your electrician) will be responsible for tracing the fault and repairing. If the fault is outside your apartment (actually, probably as far as the fuse box which is within the apartment) the management company's problem.

Likewise for the water works; if the propblem is within the apartment, it's your problem. If the problem is in the supply to your apartment, the management company's problem.

As the management own the walls, floors ceilings and roof, you are not allowed to modify these in any way (i.e. you cannot remove a wall to make a room bigger) except for drilling a dole for affixing a shelf or similar. You must keep the walls etc in good repair and not let them deteriorate in condition - i.e. keep them dry and decorated.

Many management companies have rules about what flooring you may use (having regard to the sound proofing of the floors so as not to disturb those beneath you, therefore, some may prohibit wooden floors (or unless there is a sound proofing layer between the main floor surface and the floor you are fitting.

You would probably be responsible for the panes of glass in the windows. The window frames probably belong to the management company. Thus, if you wanted to fit, for example double glazing, you would have to get permission from the management company and you would probably be restricted in the design of the window, to keep the block looking the same.

You should have no problem in renting the apartment. You cannot "assign" your "long lease" to another person - that would, in effect, be similar to selling it. If you rent out the place, your should have many of these management company restrictions in your own rental lease agreement. Otherwise, if the tenants break these any of conditions, you will be liable and held responsible for the repair.

The Lessor, or management company must have the right to enter the apartment for the repair and upkeep of the structure of the building. If for example, a water leak develops in the apartment above you, and the water comes through your ceiling, damages the walls and floors, then the management company have the right to come in a repair the damage (probably under their insurance, which you pay for in your annual service charge).

ezra_pound

Last post implies that you can't sell on your apt. This is completely wrong. You just can't sell off different portions of it or divide it in two and sell these off as two units.

In your text alienation means being able to convey to another person.

You are most certainly allowed to assign the lease to another but only for the whole unit - not part of it.

msminni

thank you both for clarifying!

now regarding odds on's post that -
"As the management own the walls, floors ceilings and roof, you are not allowed to modify these in any way (i.e. you cannot remove a wall to make a room bigger) except for drilling a dole for affixing a shelf or similar. You must keep the walls etc in good repair and not let them deteriorate in condition - i.e. keep them dry and decorated."

I take this to mean that insulation is by definition out of the question and should in fact be the Lessor's job?
The only problem is that as far as I can make out there isn't actually a management company...just a private ground owner and a lease covenant. So in that case, who is responsible for the walls??

ezra_pound

msminni wrote: »

thank you both for clarifying!

now regarding odds on's post that -
"As the management own the walls, floors ceilings and roof, you are not allowed to modify these in any way (i.e. you cannot remove a wall to make a room bigger) except for drilling a dole for affixing a shelf or similar. You must keep the walls etc in good repair and not let them deteriorate in condition - i.e. keep them dry and decorated."

I take this to mean that insulation is by definition out of the question and should in fact be the Lessor's job?
The only problem is that as far as I can make out there isn't actually a management company...just a private ground owner and a lease covenant. So in that case, who is responsible for the walls??

The purpose of the conditions on your lease is to prevent the building falling down. You wouldn't want the guy underneath you knocking down any walls.

I think that technically you own the walls in your apartment but aren't allowed structurally damage them. If you want to dry line walls, run it by the lessor. I'm sure that they would have no problem as it shows that you are caring for the apartment and would cause no damage.


Edit: in practice people would not usually bother asking permission from lessor to dry line apt walls. I suppose ask your solicitors opinion.

Valentine1

Speak to your solicitor, you are paying him to explain all of this to you.