Tenants: Get Your Landlord’s Lenders Consent to Your Lease The importance of tenants obtaining the landlord’s lender’s consent. Whilst the common goal for most prospective tenants’ is to get the formalities connected to the lease completed as fast as possible, it is important to slow down enough to ensure that the Landlord’s lender has provided his consent to the grant of the lease. What is the worst that could happen? Well, the implications depend on the type of lease you are entering into. A lease granted for a period of more than seven years. There is a requirement for any lease that is granted for a term a period of more than seven years to be registered at the Land Registry. The Landlord’s title will contain the lender’s charge and will usually be protected by a restriction on dispositions of the landlord’s title, requiring evidence that the consent of the lender has been obtained. The effect of not obtaining the lender’s consent is that a prospective tenant’s application to register a lease cannot be successful they cannot obtain the legal title, as disposition requires the grant of a lease. A lease for a period of seven years or less If a lease grants any easements these must also be registered and as above also falls within the definition of disposition which requires the grant of a lease. Other implications Restrictions and easements aside, other implications of failing to obtain the lender’s consent also exist such as, where the landlord defaults, leaving the lender as a mortgagee in possession or where the lender appoints a receiver. The lender can then sell the property on to someone else who is not party to the lease and who may decide that they want the tenant to leave the property.
Tenants get your landlord’s lenders consent to your lease
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