Any solicitors? Leasehold covenant Query "business use"

4
Found 24th Sep 2017
I am looking to buy a residential garage that is only a few years old. Leasehold with 900+yrs. One of the covenants is that it is not to be used for business use, but it doesn't delve into any details about that. I have read online in various discussions that it could mean you must not have customers visiting/trade from, deliveries, employ anyone at the property, alter the property for the business, or noise which I wouldn't be doing but there are no details on the lease.
I had intended on using the garage for both personal use (to give us more room at home) and to store seasonal stock that I sell for my business. I have 2 rented storage units that I usually visit once or twice a week to replenish stock or store newly purchased stock. I would like to save money and not rent those.
I would still purchase the garage even if I could not use it for my business as I believe I am buying a bargain that could sell for more and would be useful for us anyway.

What do you think about the covenant?
Community Updates
Ask
4 Comments
Only guessing here, but I would of thought that would be classed as business use, although unless anyone complained how would the seller know. Is there any mention of penalties for using the garage as a business?
Edited by: "Dyslexic_Dog" 24th Sep 2017
The seller of the garage would be gone and nothing to do with it, it would be the leaseholder that could forfeit the lease and take back the property and I would lose my garage & investment. Although I read the leaseholder would have to give 14 days notice and then go to court, and most courts would not forfeit a lease without giving the tenant time to rectify the covenants.
How would the leaseholder find out, a disgruntled neighbour probably.
if it is stated for personal use then you can not use it for business use. you could risk it until someone complains and you have to stop using it for business storage.

i think it is more to stop people renting it out for parking or to other businesses. if you use it, then you could argue it is for personal use.
If it's just for storing stock just go for it and say it's personal stock ,;)
Post a comment
Avatar
@
    Text

    Top Discussions

    Top Discussions

    Top Merchants