Managment Company Want Payment For Remortgage

Jed_Exodus

We've got a mortgage offer to remortgage our house, we've been living here 7 years now. The house is freehold but we pay a management fee of around £80 a year to a management company to cut the grass etc.

The solicitor has written to us saying that a clause in our contract meant that the mortgage could not go ahead without approval from this company. We were shocked when he wrote to us days later saying they were demanding £102 for it to go through. Basically for them to sign a certificate.

I can't understand what my mortgage has to do with the people who do the gardening on the estate. I've written to them and still haven't received a satisfactory explanation.

Has anyone come across this situation before, I have searched Google and this forum and found nothing.

If there's anyone that can explain why I need to pay them that would be helpful, if anyone knows if I can get out of it that's even better.

opinions4u

They have you over a barrel.

The freehold agreement will require it. It probably quotes a lower fee and allows for "reasonable increase". You could challenge reasonability in court but it would take time, cost money and you may not win.

I'd pay up, remortgage and consider getting residents together to buy out the freehold company later on.