Defective Lease · Report on Title scenarios
Defective lease
5 situations in which a defect in the lease comes up during a conveyancing transaction, each answering a different question.
- The lease has no mortgagee protection clauseLenders require notice before a landlord can forfeit the lease. Where the clause is missing, the choice is a deed of variation or a policy that belongs to your lender and not to you.
- The lease makes each flat insure its own part of the buildingWhere the lease makes every tenant insure their own part, rebuilding after a fire depends on everyone else having insured properly. What contingent buildings insurance covers, and what it does not.
- The lease has no right of entry to repair other parts of the buildingA lease that obliges you to repair but gives you no way of reaching the work. The deed of variation route, the insurance route, and the alteration exclusion to watch for.
- The lease delays sharing out the insurance moneyA lease that makes everyone wait years before insurance proceeds are shared out. Why the practical risk is small, why it still gets raised, and what your buyer will say about it.
- Does indemnity insurance fix a defect in the lease?No, and the gap between compensating for a defect and curing it is where sellers and buyers come unstuck. What it means that lenders keep changing their minds about accepting it.
Already bought, and a defect in the lease has become a problem?
These pages are written for someone still deciding. If this came up after you completed, the question is a different one — what was known during the purchase, and what should have been reported to you.
Tell us what happened → WhenIBought.comDealing with this on a current conveyancing matter?
Current Report on Title paragraph
Do not rely on wording copied or saved from this page. Get the current wording dealing with this scenario.
View current paragraph →ROT Notification Service
Keep relevant ROT wording under review as Lexsure issues updates.
View Notification Service →