Newspaper article The Evening Standard (London, England)

Has Buy-to-Let Boyfriend Made a Big Mistake?

Newspaper article The Evening Standard (London, England)

Has Buy-to-Let Boyfriend Made a Big Mistake?

Article excerpt

Byline: Fiona McNulty OUR LAWYER ANSWERS YOUR QUESTIONS

QMY BOYFRIEND wanted to invest in a flat that he could rent out for holiday lets. However, now that he has exchanged contracts on a property, he has been told by his solicitor that there is a restriction in the lease against holiday letting.

We have never heard of this before. Is there anything my boyfriend can do about it? He wouldn't have tried to buy the flat if he'd known of the restriction.

ABEFORE contracts were exchanged, your boyfriend's solicitor should have given him a copy of the lease to read, and should have drawn his attention to its terms, also explaining any important and onerous covenants.

Having exchanged contracts, your boyfriend has entered into a binding agreement with the seller and if he fails to complete the purchase on the date agreed, he is likely to be in breach of contract. If your boyfriend ignores the covenant against holiday letting and rents out the flat in such a manner, he will be in breach of the terms of the lease.

Your boyfriend should see if the landlord is prepared to vary the terms of the lease, which could solve the problem, although the landlord is likely to require payment for doing so -- this is often called a "premium". Your boyfriend will also have to cover the landlord's legal costs.

If your boyfriend has to pay to get the terms of the lease varied or, indeed, if he cannot get it varied to allow holiday letting, then he may have cause for complaint against his solicitor, particularly if the solicitor knew he wanted to use the flat for holiday lets.

WHAT'S YOUR PROBLEM? IF YOU have a question for Fiona McNulty, please email legalsolutions@standard.co.uk or write to Legal Solutions, Homes & Property, London Evening Standard, 2 Derry Street, W8 5EE. We regret that questions cannot be answered individually, but we will try to feature them here. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.