By Guest on 10th Dec 2013

    A clause in the lease of the flat I am buying stipulates that "the transferee shall have entered into a deed of covenant at the lessee's expense". I told my conveyancer that I am the transferee and the vendor is the lessee. My conveyancer tells me that I am both the transferee and the lessee.
    Another clause says: "The lessee covenants with the lessor and separately with the managers as follows:
    within one month of every transfer of the property to give notice thereof in writing... and to pay to the lessor's solicitors and to the managers a reasonable registration fee in respect of each such transfer."
    I maintain that 'lessee' refers to the current owner of the flat and that he should therefore pay the fees.
    Can I be both the transferee and the lessee, even within the same sentence?

    I would be much obliged if you could answer this question.

  • 1 Answers

    By Guest on 15/12/2013


    As to the fee for serving notice, this will be your responsibility. It becomes payable following completion and at that point you will be the lessee (as in the current tenant). As to who is responsible for the deed of covenant fee, this is open to interpretation. The way the clause reads, it appears as though the intention is for your seller to be responsible. Why else would the author of the clause have differentiated between lessee and transferee? That said, it is usual in residential conveyancing for the buyer to be responsible for the fee for a deed of covenant - it is a deed between landlord and incoming owner after all and does not directly affect the seller.

    In truth, irrespective of the construction of the clause it is a matter for negotiation between seller and buyer as to who should pay. It makes no difference to the landlord and he will not and cannot become involved. If the deed is not entered into it is you who will suffer because it is you who the landlord would have to take enforcement action against for breach of the lease terms.


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