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Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7676
Experience:  UK solicitor holding an England and Wales practising Certificate.
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I am a Freeholder and the tenant is selling the flat. the

Customer Question

I am a Freeholder and the tenant is selling the flat.
the prospective buyer's solicitor is asking

Are the incoming tenants required to enter into a deed of covenant? If so, please provide:
(a) Your standard form of deed of covenant,
(b) The cost of preparation and registration.

What is a deed of covenant?
What is it used for?

Why should I want to do a deed of covenant?
Submitted: 4 years ago.
Category: Property Law
Expert:  Thomas replied 4 years ago.

Thank you for your question and patience, I’m Tom and I’ll try to help you.

Every lease will contain a list of covenants which the lease requires the tenant to observe/perform. These are generally called the “Tenant’s Covenants” and the lease should make this fairly clear by titling a particular clause in this way. It will make up the bulk of the lease.

When the lease is sold, you as freeholder want to ensure that the incoming buyer is obligated to perform the tenant’s covenants, so that you can enforce them against them and maintain the value of the building generally.

The way that you do this is by getting the incoming buyer to execute a “Deed of Covenant” upon completion. This is a deed which recites the particulars of the lease and the sale and then a section where the buyer covenants to perform the covenants/obligations of the tenant contained in the lease.

You can then use this to enforce any breaches of the covenants against the Buyer.

You should get a local solicitor to prepare the template that you can use now and for further subsequent sales of the flat. Get them to confirm their fees and then get the seller’s solicitors to give you an undertaking to pay the costs of those fees either before or on completion of the sale.

My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.

Kind regards,