At Scott Cohen Solicitors we routinely deal in all aspects of Lease Services as they pertain to the Block Management Industry. From Lease Advice to Lease Variations, Licenses and Consents, we cover the full range of such matters. Our comprehensive involvement in the interpretation and construction of covenants in Leases allows us to provide astute and practical advice to Managers.
Lease Advice and Interpretation
Providing clients with clear and concise information regarding the implication of Lease terms forms an essential part of Scott Cohen’s work. Years of participation in cases which litigate upon the meaning of a range of Lease terms assists us to provide practical and clear advice to clients on Lease Interpretation. Examples of some of the more common areas in which we assist with Lease advice include:
- Evaluation of whether the billing practices of the Manager correspond with the Service Charge Machinery of the Lease.
- Advice on whether one off demands for large expenditure such as Major Works can be made.
- Advice on the split of Management between various parties to the Lease.
- Advice on whether Legal fees are recoverable by way of the Service Charge.
- Advice on whether Legal fees are recoverable by way of Administration Charge and in what circumstances.
- Advice on whether Interim Service Charges can be demanded and when they can be demanded.
- Advice on whether the Lease permits short term lettings.
- Assessment of the liability of parties for repair for tricky areas such as balconies and windows.
- Provision of an evaluation of the building services the Manager is obliged to provide.
- Advice on whether reserves funds are permitted.
- Identification of the information to be supplied to a Manager following assignment.
- Advice on whether consent is required for alterations or subletting and whether there is an obligation on the Manager to grant such consent.
Lease Variations
A Lease Variation is a change to the terms of a completed Lease. These can be for a range of purposes agreed between the parties, examples of which include: alterations, changes of use of premises, amendments to Service Charge proportions payable, provision of rights, and rectification of faults.
A Variation is effected by a formal deed and may be made by agreement between the parties or by an application to the First Tier Tribunal, in instances where an agreement cannot be reached. Scott Cohen is adept at drafting such deeds and can provide expert, tailored advice to Landlords regarding their options where they are seeking to vary a completed Lease.
Scott Cohen can also assist with Lease Variations arising from Lease Extensions either on terms freely negotiated or following a Statutory Lease Extension under the Leasehold Reform Housing and Urban Development Act 1993. Additional modifications sought by the parties to modernise Lease terms can be incorporated into the Lease as part of this process. Scott Cohen can advise upon these works at a fixed fee.
Where the terms of variation cannot be agreed, Scott Cohen can also assist with the full conduct of proceedings at the First Tier Tribunal for the necessary order for variation of the Lease terms under the Landlord and Tenant Act 1987. This can include the provision of advice on the procedures, assessment of grounds, preparation and submission of pleadings and instruction of a Property Barrister to attend any listed hearing of the matter. For more information on our First Tier Tribunal Services, please visit our First Tier Tribunal page.
Licences and Landlord’s Consent
Circumstances in which the parties can agree to a variation can include licenses, where the Manager gives permission for matters which require the Manager’s consent and the parties wish to record the conditions and terms of such matters. The use of ‘Consents’ in Leases provides Managers with an element of control over matters which affect the value of the property or management of the building. The Tenant’s interest remains in having flexibility in its options and reasonable responses to requests for consent.
Scott Cohen can help Managers navigate the issue of ‘Consent’ within the framework of the Leases while taking into account statutory obligations.
Scott Cohen can assist this process with clear advice on the interpretation of the parties’ position under the Lease including consideration of the circumstances under which consent should be obtained, assessment of conditions attached to such consents, and in relation to the wider application of the Landlord and Tenant Act 1987. Scott Cohen can also advise in circumstances where consent can be construed as ‘unreasonably withheld’ and can assist the parties to understand what constitutes a reasonable period for response and conditions under which consent can be withheld.
Where necessary, Scott Cohen can assist with the negotiations and drafting of required terms for completion of a formal license. In doing so we utilise our extensive litigation experience to negotiate favourable terms to suitably protect a client’s interests.
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