How to answer the Leasehold questions within the Property Information Questionnaire (PIQ)

The purpose of this article is to give guidance as to how to complete the leasehold section of the Property Information Questionnaire, also known as Part 2 of the PIQ.  

The  article does not propose to address all of the questions in the Property Information Questionnaire; for this you will need to go to Fridays’ online Property Information Questionnaire reached at Property Information Questionnaire.

Below we consider some of the questions likely to cause concern to someone completing the leasehold section of the Property Information Questionnaire.

What is the name of the person or organisation that you pay ground rent and service charge to?

PIQ Guidance:

The Landlord would normally be the person to whom the ground rent is payable though it is possible that an agent may be employed to collect this on the Landlord’s behalf.  The

person or organisation to whom the service charge is payable may be your Landlord or Head Landlord or a residents’ management company. You should find the Landlord’s details on your latest service charge demand.  It is possible that an agent has been employed to collect the service charges on your behalf. Please pass on the receipts to the Property Lawyer dealing with your conveyancing. 

Are you aware of any proposed or ongoing major works to this property?

PIQ Guidance:

The Government has employed rather ambiguous wording here.  

Clearly the Government intended to be asking the question relating to major works to your building as opposed to your property.  There is little point in trying to be clever here and saying that there are no proposed works to the property when you know full well there are proposed works to the building, such as repairs to a lift, common hallways, etc..  

When addressing questions in legal questionnaires  (such as a Property Information Questionnaire) it is generally advisable to give more information rather than less.  If you know that there are proposed works to the building then you should set them out.  It is also advisable to suggest the likely contribution from this particular flat.  Information will come out in the wash during the conveyancing process so you are better off being upfront at this stage.

Does the Lease prevent you from subletting?

PIQ Guidance:

By subletting, the PIQ is referring to your ability to let out the property.  

The Government wording is not very clear because by using the word “prevent” the interpretation could be very wide.  For example, does provision in the Lease that requires the Landlord’s consent to letting of the property count as “preventing” subletting?  

The Lease requires that the sub-tenant enters into a Deed of Covenant agreeing to perform the provisions of the Lease generally?  Is that deemed as “preventing” subletting?  

Fridays’ view is that you are better off erring on the side of caution in stating the answer as “yes” but clarifying if the prevention is purely subject to certain conditions and that those conditions are outlined in the answer on the Property Information Questionnaire.  

It is also worth outlining what happens in practice.  For example, it may well be that you have a share of the freehold (you may even be a director of the freehold company) but the lease technically speaking does prevent subletting.  If however in practice you are allowed to sublet then why not state so.  For guidance on the exact wording to put within the Property Information Questionnaire in this area then please either phone Fridaysmove or complete our online Property Information Questionnaire.  

Remember, you need to be careful about giving definitive one word answers in completing the Property Information Questionnaire.  By answering  the above question with a  “no”, you could very well open yourself up to significant legal problems in the future which will be highlighted in the conveyancing process .

If you do know the exact provisions within the Lease that deal with subletting then tick the answer as “do not know” then next to the answer, write: 

“You have not obtained legal advice on this but I understand that the relevant provision in the Lease is paragraph … and the Buyer is recommended to ask his lawyer or property lawyer dealing with the conveyancing to review this section of the Lease (contained within the Home Information Pack) before placing an offer on the property or prior to exchange of contracts.”.

Does the Lease allow you to have access to a communal garden?

PIQ Guidance:

As with the questions above, it is highly unlikely that you will easily find the relevant provisions within the Lease in order to answer this question within the Property Information Questionnaire.  

It is highly likely that most leasehold owners in the UK that have access to a communal garden will very quickly answer the question as “yes”.  This would be dangerous as the fact that you use the communal garden in practice does not necessarily mean that you have an actual legal right to use the communal garden.  

The Property Information Questionnaire is asking here whether or not you have a legal right.  In other words, does the lease grant specific rights allowing you access to the communal garden.  Only after a proper review of the Lease or the Title Deeds will you be able to answer this question definitively.  As with the question above, if you are going to answer the question “do not know”, there is nothing to prevent you from specifying what happens in practice and again recommending to the Buyer and their lawyer that they do not necessarily rely on the information contained within the Property Information Questionnaire but they check the Lease themselves. 

For more information as to how to complete the Property Information Questionnaire and be better prepared for the conveyancing process generally, (more specifically on the completion of the Part 2 of the Property Information Questionnaire relating to leasehold properties) , please do not hesitate to call Fridaysmove and we will offer you guidance.  Alternatively, please access our online Property Information Questionnaire.