In order for the registration of the purchase  to proceed at the Land Registry, a contract that compels the buyer to provide details as the new leaseholder to the freeholder/managing agent, is that of a  Deed of Direct Covenant. It is found in many long leases written before 1996 and also means the purchaser agreeing to abide by all the original lease terms before completion and through the duration of ownership. This deed of direct covenant will be provided by the sellers conveyancing solicitor in a draft form to the buyers conveyancing solicitor, and the latter will then produce the final deed for the buyer to confirm that they will comply with the existing lease terms.

Landlords and agents will not give consent, provide deeds of covenant or register the sale if any debts are not paid.

When the Property is Finally Sold

When the property is sold and whether or not the lease requires it, an assignment notice of the sale must be served by the conveyancer on the landlord (or management company) along with the new mortgage details including the name and address of the lender and the mortgage account number. A receipt for this notice is usually supplied and will be charged for but if for some reason it cannot be provided then, as a last resort, evidence of the notice of service will be acceptable. This could be something such as the landlord asking for the fee before providing the receipt.


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