We are planning to extend our leases by means of a Deed of Variation.
I am a director of a not-for-profit company, which owns the freehold of a block of 27 flats. The company manages the property on behalf of the lessees each of whom own one share in the company. Our property was built in 1967, the leases of each of the flats having commenced in 1967 and with a life of 120 years. Our leases therefore have 77 years of unexpired life.
We are planning to extend our leases by means of a Deed of Variation. We already have a Deed of Variation which will be superseded by the new deed which will include the clauses of the existing deed.
Each flat owner has his or her own garage. The garages have their own separate leases. One concern is that flat owners could assign their garage leases to a one party and assign their flat leases to another party. This would be a retrograde step. We would be faced with more people and vehicles visiting the property and inevitably the garages would fall into disrepair. How can we ensure that each flat and its associated garage is only assigned to one common owner? Could this be enforced by a one new Deed of Variation which also extends the leases of the flats and associated garages? It would certainly reduce the paperwork burden if we could carry out the operation with just one all encompassing deed of variation.
Katie Cohen, a leasehold enfranchisement solicitor at Jaffe Porter Crossick LLP, replies:
It may be possible for the garage lease and flat lease to be amalgamated so that one lease is put in place and therefore one common owner for both the flat and associated garage. This would overcome the problem of separate ownership.
