Addressing new owners’ legal non-compliance in leasehold property?

Hi, we own the freehold of a property in Wales containing three individual leasehold flats, one of which has recently had a change of owner, who is failing to uphold or comply with his legal obligations. Note, we own the entire freehold.

We sold the ground floor leasehold flat approximately 5 years ago, and it has since been purchased by a Chinese buyer who bought the property while in the UK but lives in China.  This purchaser failed to inform his solicitor that he was going to let out the flat and therefore his solicitor did not provide him with details of the legal responsibilities of being a landlord, accordingly I have tried to assist but with only partial success.

There are strict terms in the lease agreement which forbid the sub-letting without my formal written consent as the Freeholder. Whilst I am aware that I cannot reasonably withhold my consent for the owner to let out the property I am equally aware that he needs to comply with certain formalities.

When I first became aware that the new owner was intending to let out the property – via an Agent – I contacted him and his Agent and advised that the flat was not – but needed to be – registered with Rent Smart Wales (RSW) and that he/they needed to verify to me that – as is a requirement of the Lease agreement – the terms of the Lease agreement should not be compromised by the terms of any Contract of occupation provided to his/their tenant. (Ironically the Agent is licensed with RSW so why the registration had not been done is somewhat questionable)

After some 6 to 7 weeks, during which time a tenant was living in the flat, the owner finally, after a number of communications from me, registered the property however I still have not had sight of, or received any confirmation that the contents of the Lease agreement are not compromised by any Contract of Occupation – assuming one is in existence.

The result of this is that I have not, to date, provided my formal consent for him to sub-let the flat.

This scenario is further complicated by the fact that I have recently – since the change of ownership – had reroofing works undertaken on the property.

These works had been notified to the original seller’s solicitor during the legalities for the sale, and the new purchaser was aware of them. Accordingly, I have notified the new owner and provided proof of the works and associated costs, including the receipt for the monies paid.

However, he – the new owner – is trying to use the fact that I am not prepared to provide my formal consent as a reason for non-payment of his portion of the monies payable for the reroofing works. He stated, “please provide me with your written consent and then I will pay the money.”

I have stated to him that I cannot provide my formal consent until he has fulfilled his obligations under the Lease agreement and provided me with proof in regard to the stated documentation, at the same time I have similarly stated that I will willingly provide my written permission when such proof etc is provided.

Given the stated charade, one cannot help but wonder whether there is an actual Contract of Occupation in place – maybe unknown to the Tenant – but that is pure speculation.

It would be interesting to have any input or suggestions in regard to the above, as obviously it is an item that needs to be resolved one way or another.

Thanking you in anticipation of any input or suggestions.

Don

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