Skip to main content

News story

August 3, 2016

Letting your flat might not be as easy as you think!

You’ve chosen to work abroad for the next couple of years. You’ve decided to rent your flat out whilst you’re away. Friends in the same position have done this - apparently, it’s easy! However, a recent case might make this more of a problem than you expected.

In Roundlistic Ltd v Jones, the Upper Tribunal (Land Chamber) considered whether a covenant in a lease prevented a tenant from granting an underlease.

The covenant in question said that the tenants could not “…use the premises hereby demised or permit the same to be used for any purpose whatsoever other than as a single private dwelling house in the occupation of the Lessee and his family.”

As above, after having decided to work abroad, the tenants sublet the property for twelve months. The landlord declared that the tenants were in breach and issued proceedings in the First-tier Tribunal (Property Chamber). However, the FTT held that the landlord was not entitled to enforce the covenant because:

  • the landlord was prevented from doing so by an estoppel by convention, and the covenant would not be enforced;
  • that the landlord had waived its right to enforce the covenant; and
  • that the covenant amounted to an unfair contract term.

However, the landlord successfully appealed the FTT’s decision in the Upper Tribunal and won the case.

In short

Leases tend to be full of dos and don’ts, and there is always a provision relating to permitted use.

Your lease may contain a similar restrictive covenant to that outlined in Roundlistic Ltd v Jones, and if your freeholder (landlord) sees that your flat is occupied by persons other than yourself or your family, he is likely to tell you that you are in breach of your lease.

Resolution

This issue could be resolved by varying the terms of your lease and removing/changing those ‘awkward’ clause(s) preventing you from sub-letting. However, there is usually a price to pay, as deeds of variation rarely come free of charge unless you’re incredibly lucky!

The trick

Think ahead and save costs. Even if you’re not considering renting out your flat but simply wish to extend the term of your lease, check that you are not restricted from sub-letting and negotiate any ‘old fashioned’ restrictions from your lease at the same time as your lease is extended.

Call us today for advice on letting your property today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • The Employment Rights Act is a call to action for employers 
    A new year, a new employment framework: what employers need to know about the Employment Rights Act passed by parliament in December 2025.


    Read more
  • Dilapidations explained: What commercial tenants and landlords need to know
    Dilapidations are a common source of dispute at the end of a commercial lease. They can involve significant sums of money and often come as an unwelcome surprise to tenants who believed they had left a property in reasonable condition. Understanding


    Read more
  • The role of due diligence in corporate transactions
    In corporate transactions, due diligence is a key stage that usually follows agreement of Heads of Terms, allowing the Buyer to investigate the target company or its assets before committing to the deal.


    Read more
  • Love in later life and the inheritance tax trap
    Increasingly, lawyers are seeing couples who have chosen to live together rather than marry, sometimes for many years, without fully appreciating how differently the law treats them, particularly when it comes to inheritance tax and financial protect


    Read more
  • Understanding Heads of Terms in corporate transactions
    Heads of terms are a crucial first step in corporate transactions. Learn what they include, why they matter, and how they shape successful deals.


    Read more

What they say...

  • Amish Bristol, January 2026
    Absolutely brilliant, fast, professional, clear and delivered a robust service “Recent mortgage oversight from Ben Marks and Anne was superbly dealt with, and I intend on moving all my business to them. For a big firm, they really do pay attent

  • Client, January 2026
    Excellent experience “The process of my work was quick and effective.”

  • Vicky, January 2026
    Clear, friendly, helpful “Very efficient and helpful with arrangements for my will.”

  • R Cook, December 2025
    Settlement Sorted “Grayson Stuckey was great. Efficient and friendly with all aspects of the support provided. We worked well together and achieved a positive outcome. Recommended.”

  • Ivan Naisbitt, December 2025
    More than just a service “Michael Davies has been representing me for about 35 years, and I cannot recommend him or RIAA Barker Gillette (UK) highly enough. Aside from the normal conveyancing, he is always on hand to advise and guide you throug

Read more
Send this to a friend