Guaranteed Rent for Leasehold Flats: Lease Clauses to Check First

Most flats in London are leasehold, which means your lease sets rules on how the property can be used. Before agreeing to guaranteed rent or serviced accommodation, it's worth spending twenty minutes with your lease.

The clauses to look for

Subletting or "alienation" clauses

These control whether you can let or sublet the flat, and whether you need the freeholder's consent first. Some allow lettings with consent, some restrict how long a letting can be, and a few prohibit certain types of letting altogether.

"Private residence" or "single family" covenants

Some leases say the flat must be used only as a private residence, sometimes for a single household. Courts have treated short-term lettings as potentially breaching these covenants, so check the wording carefully.

Business use

Clauses that prohibit using the flat for any trade or business can be relevant where a property is run as serviced accommodation.

Nuisance and building rules

Regulations on noise, rubbish, keys and use of shared areas apply to everyone staying in the building, so a good operator will brief every guest.

If the lease is unclear

• Ask your managing agent or freeholder in writing.
• Ask a solicitor to read the relevant clauses.
• Consider whether a longer-stay model, such as a company let with stays of several months, fits the lease better than short stays.

Don't forget the building

Some blocks also have their own rules on key safes, concierge access or parking permits. Knowing these up front makes things smoother for everyone.

How we handle it

Before we take on a leasehold flat, we review the lease with you and agree a way of operating that fits it. If the lease doesn't allow what's needed, we'll tell you straight away. Find out more about our guaranteed rent scheme.

This article is general information, not legal advice.