No business clause in lease/getting permission to childmind from leaseholders - help!

[Chelsea]

I'm well into the process of registering to become a childminder, but found out the most devastating news today :(

I have been told by the lease holders of the flat we have a mortgage with that we can't run a childminding business from home, as there is a no business clause in our lease.

Can I challenge this? Has anyone done so and succeeded? What did you need to do?

Any help or advice is really appreciated, as I'm so keen to get registered but just don't know what to do from here!

Thanks in advance for your help.

Chelsea

[MrsP2C]

do you know who the freeholders? You can apply to them/the head lessor for a variation in your lease - but of a long-shot but worth consideration. Failing that, could you argue that as the LA don't (normally) need planning permission for change of use or rates purposes, you are actually working from home rather than running a business.

[sarah707]

As well as the excellent advice ^^ you might also try asking them what their problem is with you running a childminding business - you might be able to convince them that you'll be insured and in charge of the children etc so it's not going to adversely affect the leasehold of the property.

You can't register without this permission though - I wonder if a bit of legal help would be useful?? You can normally get free half hour consultations with legal bods on the phone...

Hope it sorts itself out. You know where we are if you need support xx

[jackie 7]

Childminding is not considered a buisness by inland revenue. I rent and am allowed to childminded even though it is not allowed by lease big they let you have children then have another go at them. Good luck.

[Chelsea]

Thank you for your replies ladies...

Yes we do know who the lease holders are, we contacted them over the phone initially to check running a childminding business from the flat would be ok which they replied "yes shouldn't be a problem" initially, but they have changed their mind since and contacted us to say due to the no business clause in the lease we cannot do it!

Do you know if there is anything other than the standard public liability insurance we could get that would perhaps put the leaseholders mind at ease that they are fully covered? Do they have a problem with allowing it because they would have to change their insurance due it changing from residential to 'business' premises?

Surely there is some guidance or legislation I could use to back me up when trying to convince them!?

[Chelsea]

Hi again all,

I sent off the info you guys led me to and received this response today:

Many thanks for your email.

I have spoken with my superior and he has informed me that this is still classed a business that is being run from a residential property.

Part of our instruction is to ensure that all leaseholders abided by the terms of the lease and the lease states:

'Not to use the flat otherwise than for residential purposes occupied by one family'


Please note that this would also affect the block insurance, we have spoken with our insurers this afternoon, it would need to be disclosed as it changes the material risk. The communal areas will not be covered by your insurance as these are retained by our client, therefore if anything was to happen in these parts the claim would be against our client.



Any suggestions of how to respond? I am going to ask why they still consider it a business but am unsure how to reply to the comment around the issue of block insurance. Please help!

[littlecheeks]

Hi again all,

I sent off the info you guys led me to and received this response today:

Many thanks for your email.

I have spoken with my superior and he has informed me that this is still classed a business that is being run from a residential property.

Part of our instruction is to ensure that all leaseholders abided by the terms of the lease and the lease states:

'Not to use the flat otherwise than for residential purposes occupied by one family'


Please note that this would also affect the block insurance, we have spoken with our insurers this afternoon, it would need to be disclosed as it changes the material risk. The communal areas will not be covered by your insurance as these are retained by our client, therefore if anything was to happen in these parts the claim would be against our client.



Any suggestions of how to respond? I am going to ask why they still consider it a business but am unsure how to reply to the comment around the issue of block insurance. Please help!


do you have to have home/house insurance with a certain company? i.e the same as the other flats in your block? that could be the problem?

not sure if ncma would offer you some advice if your not a member with them?

[FussyElmo]

Hi again all,

I sent off the info you guys led me to and received this response today:

Many thanks for your email.

I have spoken with my superior and he has informed me that this is still classed a business that is being run from a residential property.

Part of our instruction is to ensure that all leaseholders abided by the terms of the lease and the lease states:

'Not to use the flat otherwise than for residential purposes occupied by one family'


Please note that this would also affect the block insurance, we have spoken with our insurers this afternoon, it would need to be disclosed as it changes the material risk. The communal areas will not be covered by your insurance as these are retained by our client, therefore if anything was to happen in these parts the claim would be against our client.



Any suggestions of how to respond? I am going to ask why they still consider it a business but am unsure how to reply to the comment around the issue of block insurance. Please help!

If Im reading it right they are worried that the insurance will not cover the client if an accident was to happen in the communal areas.

Also they cover the entire of the flats under block insurance and for you to cm you would need business which would affect everyones insurance.

I think you need professional advice here :thumbsup: