77. Landlord’s certificate
A Landlord's Certificate is a formal document issued by the freeholder or landlord in the context of selling a leasehold property.
It typically serves several important purposes:
| Confirmation of intent to sell | The Landlord's Certificate acknowledges that the leaseholder intends to sell the property and provides the freeholder or landlord's confirmation of this intent. |
| Financial information | This document often includes essential financial information, such as:
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| Leaseholder’s compliance | The Landlord's Certificate may attest to the leaseholder's compliance with their financial obligations under the lease agreement, such as the timely payment of ground rent and service charges. |
| Buyer’s assurance | It provides the prospective buyer with assurance that the seller (the leaseholder) has taken the necessary steps to inform the freeholder or landlord of the property's sale. |
| Documentation for conveyancing | The Landlord's Certificate is a valuable document for the conveyancing process. It helps the buyer's solicitor ensure that the financial aspects related to the property sale are in order. |
| Legal requirement | In many leasehold agreements, notifying the freeholder or landlord and providing a Landlord's Certificate as part of the sales process is a legal requirement. Failing to do so may constitute a breach of the lease. |
Typically, the process for obtaining a Landlord's Certificate involves notifying the freeholder or landlord about the intention to sell the property. The freeholder or landlord will then issue the certificate, which is subsequently provided to the buyer's solicitor as part of the conveyancing process.
Both the leaseholder (seller) and the prospective buyer should be aware of the importance of the Landlord's Certificate and ensure that it is obtained and reviewed as part of the property sale process. It helps ensure that all financial aspects related to the leasehold property are properly addressed during the transaction.