Lease hold property

Agencies and other headaches, keys and cleaners, running costs and contracts...in short, all the things we spend so much of our time doing behind the scenes.<br>
aloneifly
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Joined: Tue Jan 10, 2012 2:20 pm
Location: Glasgow
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Lease hold property

Post by aloneifly »

We have a leasehold flat and have been using air b n b for short term lets.

Somehow the management co for the leaseholder has discovered this and written to me to tell me to stop as I am in breach of certain terms of the lease.
(which I wasnt aware of)

I have looked at the lease and the particular infringement as stated in their letter is

Not at any time to use or occupy or permit the premises to be used or occupied except as a private residential flat
Not at any time to use or permit the use of the premises for business purposes.


What do you determine as business purposes? I am not running a business from the flat - I run my holiday lets from my office at home. Surely business purposes would be if I was say operating a company and registered the co at that address?

I need to call the agent of course and discuss it but it certainly looks like I will need to stop offering the flats for short terms let. This is something I dont want to do.

has anyone any experience or legal knowledge in this issue?

Thanks
CarolineJ
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Post by CarolineJ »

They're right, I'm afraid. 'Private residential flat' means it must be used as someone's primary residence, whether that's you or someone you let it to on an assured shorthold tenancy of at least 6 months (assuming the flat is in England or Wales, it would be a PRT in Scotland, but flats here don't tend to be leasehold). 'Business purposes' - you are using the flat to earn money for your holiday let business, therefore it's being used for business purposes. Trying to say it isn't because you don't run a business from it is kind of like Hilton trying to say none of their hotel rooms are used for business purposes because their head office is somewhere else :)

EDIT: Just seen you're based in Glasgow, points above probably still apply, though I'm surprised if it's a leasehold flat in Scotland!
Faint heart never won fair holiday let...
aloneifly
Posts: 70
Joined: Tue Jan 10, 2012 2:20 pm
Location: Glasgow
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leasehold property

Post by aloneifly »

Thanks for the reply.
No this particular flat is in England. I do have a flat in Glasgow but it is not leasehold of course.

I have now found from a google search a ruling from the upper tribunal for lease which in a recent case stated that residential did not mean days or weeks but months.

So looks like AST now for this one - though the Managing agent has a clause about that too which states the tenant needs to sign a covenant to comply with the lease and they will charge me a "reasonable fee" for the privilege - in other words take a cut of the income :(
AndrewH
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Post by AndrewH »

Agree with CarolineJ. Sorry to be the prophet of doom, but you need to go one step further and check the Lease to see if you are permitted to sublet the flat as a private residence (e.g. on an AST). Sometimes subletting is permitted in the Lease with the landlord's consent, but not always.
Last edited by AndrewH on Mon Dec 24, 2018 4:41 pm, edited 1 time in total.
aloneifly
Posts: 70
Joined: Tue Jan 10, 2012 2:20 pm
Location: Glasgow
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Post by aloneifly »

Yes it will need to be AST from now on.

I will check thoroughly first!

Happy Christmas everyone
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