Reference no: EM133835565

Question

You are consulted by several clients in connection with their properties. Amit owns a property in Lyme Regis, Dorset which has a registered title. He bought this recently and uses this as a holiday home. He was lucky enough to secure a legal right to use the private lane from his house directly to the pebble beach. He co-owns the property with his elderly father Jay. Amit tells you that they hold the title as tenants in common. You have obtained a copy of the official copies of the title and there is an appropriate restriction on the title confirming this. Amit has told you that when he bought the property, the conveyancer mentioned something called 'overreaching' when the property is sold. Amit and his father are not considering selling the property at the moment, as his father still resides in the property. However, he is concerned as to what will happen when his father dies and the property is to be sold. His Conveyancer had also told him that in addition to any third-party interests which may be shown on his title, there are sometimes third-party interests which are not necessarily shown in the title to the property. Amit also owns a second floor flat in Hyde Park, London. He believes he has a long lease on this. He knows there is a forfeiture clause for the benefit of the landlord but he is not sure how this operates. William owns a freehold property in New Ash Green, Kent, with his wife Mandy. Their daughter, Melissa, would like to set up a business as an aromatherapist and masseuse on the premises. However, he has been told by a neighbour that there is a restriction on the title preventing the property being used for any trade or business. If this can be overcome, he would like to grant a lease to his daughter Melissa for the purpose of her business. He thinks it would be for a term of 8 years. He has no idea of the legal formalities required. He also has to pay an annual sum of £250 and is not sure what this is in respect of. Julian and Patrick are thinking of buying a commonhold unit in Bristol. They have looked at the property and it is on a large estate which is kept in an immaculate condition. However, they are not sure about the legalities concerning this and seek your advice.

With regard to the property at New Ash Green, explain to William and Mandy

a) The legal formalities required for the creation of the lease

b) Where in his title he can establish whether there is the covenant his neighbour mentioned

c) In your opinion, what is the annual sum he is required to pay in respect of the property.