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  • FIRST POST
    • misterstingy
    • By misterstingy 1st May 17, 4:42 PM
    • 37Posts
    • 2Thanks
    misterstingy
    Freeholder's sublet fee
    • #1
    • 1st May 17, 4:42 PM
    Freeholder's sublet fee 1st May 17 at 4:42 PM
    I own a leasehold flat which I rent out on Assured Shorthold Tenancies. The company that manages the freeholder's interest has written to me stating that I have to pay a fee every time I find a new tenant.

    I have owned and rented out the flat for 9 years and they want to go back to the beginning with retrospective fees.

    The only thing I can find in the lease which might allow them to charge a fee reads 'within one month after the date of every assignment death grant of probate or administrative assent transfer mortgage charge sub-lease or other event or document relating to the term hereby granted ...'

    (yes it really reads like that, i.e. no commas)

    (It goes on to say that I have to give notice to the Landlord, produce a copy of the document to their solicitor and pay a 'reasonable fee').

    My question is, what do the words 'relating to the term hereby granted' mean. Obviously my 6 month assured shorthold tenancies don't relate to the whole of the 125 year term of the lease, so does that mean I don't have to comply with this requirement?
Page 2
    • scriv
    • By scriv 2nd May 17, 1:33 PM
    • 69 Posts
    • 51 Thanks
    scriv
    Fee is £130 to register a new tenancy with a retrospective consent surcharge of £45.

    The lease doesn't say I need their consent, just that I need to provide them with a copy of the lease and pay a fee.
    Originally posted by misterstingy
    And that is what you have to argue re the consent fee. Quote your lease very clearly to them and tell them that your lease does not require you to obtain their consent.
    • Nancy Lee
    • By Nancy Lee 13th Jun 17, 8:27 AM
    • 1 Posts
    • 0 Thanks
    Nancy Lee
    Fee Reduced from £120 to £40 but..........
    I was sent a letter by e&m management asking for
    £130 To register a new tenancy
    £65 To renew an existing tenancy
    £45 Retrospective consent charge
    I wrote to them quoting the cases that went to the tribunal and they replied basically saying the tribunals decision wasn't legally binding, however as a good will gesture they will accept £40 to register the tenancy. However they will not issue a consent certificate for the reduced fee.
    I have 14 days for them to receive their requirements.
    My questions to this forum are;
    Do I need a consent certificate?
    Do I have to pay to renew an existing tenant? If so how can it be £65 when the registration fee is no £40?
    Do I have to pay a retrospective consent charge, and if so how can it be £45?
    Can they charge registration fees for tenancies before they owned the freehold?
    I have tried to phone e&m but they do not answer their phone.
    • eddddy
    • By eddddy 13th Jun 17, 8:57 AM
    • 4,807 Posts
    • 4,446 Thanks
    eddddy
    My questions to this forum are;
    Do I need a consent certificate?
    Do I have to pay to renew an existing tenant? If so how can it be £65 when the registration fee is no £40?
    Do I have to pay a retrospective consent charge, and if so how can it be £45?
    Can they charge registration fees for tenancies before they owned the freehold?
    I have tried to phone e&m but they do not answer their phone.
    Originally posted by Nancy Lee
    It depends on what your lease says and/or what is 'reasonable'.

    The freeholder and leaseholder must each do what the lease says they must do.

    So if the lease says the leaseholder must renew consent every time there is a new tenant/tenancy agreement, then that's what you have to do.

    And any fee charged by the freeholder must be 'reasonable'. Based on the Tribunal case, I imagine that a £40 fee for renewal would be reasonable.
    • sl888
    • By sl888 14th Jun 17, 2:18 PM
    • 1 Posts
    • 0 Thanks
    sl888
    I was sent a letter by e&m management asking for
    £130 To register a new tenancy
    £65 To renew an existing tenancy
    £45 Retrospective consent charge
    I wrote to them quoting the cases that went to the tribunal and they replied basically saying the tribunals decision wasn't legally binding, however as a good will gesture they will accept £40 to register the tenancy. However they will not issue a consent certificate for the reduced fee.
    I have 14 days for them to receive their requirements.
    My questions to this forum are;
    Do I need a consent certificate?
    Do I have to pay to renew an existing tenant? If so how can it be £65 when the registration fee is no £40?
    Do I have to pay a retrospective consent charge, and if so how can it be £45?
    Can they charge registration fees for tenancies before they owned the freehold?
    I have tried to phone e&m but they do not answer their phone.
    Originally posted by Nancy Lee
    Hi Nancy, did you have further info from E&M as I received the same letter and not sure if I should pay, they want to charge 390 for current and 2 previous tenants. Also, any luck in finding out if a consent certificate is needed as I couldn't find any further details online, thanks.
    • Wanderingpomm
    • By Wanderingpomm 14th Jun 17, 2:30 PM
    • 22 Posts
    • 3 Thanks
    Wanderingpomm
    They are taking the !!!!. Tell them you won't pay it and then jointly get a solicitor with all the landlords they are trying to get money from. You have case precedent.
    • squasher
    • By squasher 11th Jul 17, 12:10 PM
    • 1 Posts
    • 0 Thanks
    squasher
    Same request
    I've also had a letter from E&M now on behalf of Proxima GR Properties Ltd (and not Peverill who they once represented) with the same demand for £130 to register a new tenancy, £65 to renew an existing tenancy and £45 for a retrospective consent discharge. Clearly there are anomalies in these various figures in request for payment and it would be very interesting to know what they do to justify these wholly exorbitant sums. The figures they are quoting bear are not representative of the maximum figure assumed by the Tribunal. It would be good to know if many others have had similar correspondence lately.
    • willga
    • By willga 13th Jul 17, 8:57 AM
    • 1 Posts
    • 0 Thanks
    willga
    I've received exactly the same letter from E&M - they're obviously looking to milk the cash cow this summer, probably to fund the Tchenguiz brothers' SFO legal bill.

    Is there some form of Group Action Litigation that we can all get behind to defend against this extortion?
    • eddddy
    • By eddddy 13th Jul 17, 11:47 AM
    • 4,807 Posts
    • 4,446 Thanks
    eddddy
    Is there some form of Group Action Litigation that we can all get behind to defend against this extortion?
    Originally posted by willga
    I don't think you need to do anything dramatic like that.

    As I said in post #19, there are Upper Tribunal precedents that say £40 is a reasonable fee - unless your freeholder is incurring greater costs for some reason.

    I would just refer your freeholder to those precedents, and ask them what extra work they are doing to justify the higher fee.

    If you don't think their answer is credible, you can make an 'Application for Determination' to the first tier Tribunal for a £100 fee, I believe.

    (And the Tribunal has the power to make the Freeholder pay you back the £100, if appropriate.)

    Some info: http://www.lease-advice.org/faq/what-can-i-do-if-i-disagree-with-an-administration-charge/
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