A Deed of Variation is a document that varies a lease to make a required or desire change, such as adjusting the rent, changing the property’s use and more.
But what happens if you have a tricky landlord who says no? What are your options?
In this article, Leasehold Property Partner Niki Adkins outlines everything you need to know…
Can a landlord refuse a Deed of Variation?
As a lease is a contract, it cannot be varied unilaterally (i.e. by one party alone), meaning the freeholder can legally refuse a Deed of Variation.
However, in most circumstances, unless there is a specific reason for a landlord to refuse a variation, landlords are usually willing to assist, provided their legal costs are covered.
Related: How to contact your freeholder for a Deed of Variation?
Can I get a Deed of Variation without landlord consent?
If your landlord does refuse your proposed Deed of Variation, you have a couple of options:
- If the proposed Deed of Variation is to reduce your ground rent, you may be able to undertake a statutory lease extension; which would reduce your ground rent to nil. For more information about getting a statutory lease extension, click here.
Or
- Apply, in some circumstances, to the First-Tier Tribunal for an Order to be made enforcing your lease variation. We explain the criteria and Tribunal process below.
Alternatively, you and the other qualifying leaseholders may wish to collectively force the freeholder to sell the property to you.
This is known as enfranchisement and allows you as a flat owner to have greater control over your property. You can, therefore, get a deed of variation without landlord consent (as you are the landlord), as long as the other relevant leaseholders agree. Find out more here.
When will the Tribunal vary the lease?
The Tribunal may vary a lease if:
- It has inadequate provisions relating to the repair/maintenance of the flat or building.
- The insurance provisions are inadequate.
- There are inadequate provision for the repair/maintenance of any installation required for a reasonable standard of accommodation of any flat within the building.
- There is inadequate provision for providing any service required for a reasonable standard of accommodation of any flat within the building.
- There are inadequate or no provisions for the recovery of money from a party to the lease spent on maintaining the building by another party to the lease.
- The computation of a service charge detailed in the lease is inadequate.
- For example, where a service charge proportion expressed as a percentage in all of the leases in respect of a building does not add up to 100%.
Related: Ground rent over £250? Here are your options
Who can apply to the Tribunal for a Deed of Variation for a leasehold?
An individual flat owner can apply to the Tribunal to vary their lease, as well as a larger group in the same building.
Where a group are applying for their leases to be varied, a certain number of the leaseholders in the building need to be in agreement as follows:
- Where there are eight or fewer flats involved, all but one need to be in agreement
- Where there are nine or more flats involved, no more than 10% can object, and at least 75% must be in agreement
What’s the Tribunal process for getting a Deed of Variation?
The process for varying a lease through the Tribunal is as follows:
- Notices are served on all concerned parties (i.e. all flat owners and the freeholder) giving them notice of the intended application;
- An application is prepared and submitted to the Tribunal for their determination;
- The Tribunal will issue Directions stating the steps required by each party, which will usually involve exchanging information and the preparation of a Trial Bundle;
- The Tribunal will list the matter for either a physical hearing or a date on which a paper determination will be made;
- The Tribunal will issue its Order determining what variations (if any) are ordered; and
- Deeds of Variation are then drawn up, signed, completed and registered at the Land Registry.
How much does it cost to go to Tribunal for a Deed of Variation?
This depends on the number of leases involved and how complex the matter is.
For a tailored cost estimate, please use the information below to get in touch with our bright Leasehold Property Team.
Specialist Deed of Variation Solicitors
Our bright Leasehold Property department is one of the largest and most experienced in the region. They specialise in multiple areas of leasehold law, and would be happy to assist you in getting a Deed of Variation; inside or outside of court.
If you have any questions following this article, or would like to get in touch to discuss your specific circumstances with an expert, you can get in touch on 01202 499255.
We would be happy to assist you with any leasehold property queries and offer a free initial consultation to all new clients.
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