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It is essential that the sub-letting of flats is covered by the establishment of a legally binding rental agreement and this is usually best left to the professionals - either a solicitor or a reputable letting agent. Potential pitfalls associated with sub-letting can be minimised by demanding appropriate references and ensuring the tenants understand that living in a leasehold flat is essentially governed by the covenants of the lease (which Ormsby (Freehold) Ltd take very seriously). It is the lessees responsibility to ensure that tenants fully understand the nature of the covenants to which they will be subject.

Clause 5(xiii) of Ormsby’s lease requires sub-tenants to enter into a Deed of Covenant prior to a tenancy being granted. The intention is to ensure that sub-tenants understand and accept the restrictive covenants contained in Ormsby’s lease and the regulations made under them before they legally commit themselves to a tenancy agreement. Lessees who grant a tenancy without clearing this requirement will be in breach of their lease and immediate enforcement action will be taken for which an administration charge will be made.

Where a lessee is using a letting agent to arrange a tenancy it is essential that the agent is made aware of these requirements and instructed that under no circumstances must prospective tenants be permitted to sign a tenancy agreement without also signing the Deed of Covenant. The Deed of Covenant is available from Ormsby (Freehold) Ltd - a fee of £100 applies.