Absurd Freeholder notice fee

Fraise

Love_to_Save wrote: »

Hi All,

I have been an avid reader of this forum and I could really do with some advice.

Me and my girlfriend are nearing exchange for a leasehold house (built in 1959). I have been going through the lease to ensure that we understand the conditions fully. Our solicitor had advised us that a notice fee would need to be paid to the freeholder upon completion.

Now, the lease specifically states the following -

"Within one month of every assignment assent transfer or underlease (otherwise than by way of mortgage) of or relating to the demised premises or any part thereof to give notice thereof in writing with particulars thereof to the Lessor's Solicitors and produce such assignment assent transfer or underlease or in the case of a devaluation of the interest of the Lessee not perfected by an assent within twelve months of the happening of thereof to produce to the Lessor's Solicitor the Probate of the Will or the Letters of Administration under which such devolution arises and to pay them a registration fee of ten shillings and sixpence in respect of each assignment transfer or underlease or devolution."

Our solicitor wrote to the freeholder to confirm the notice fee, they have come back to say that the notice fee is £240! Our solicitor simply said to us that this will need to be paid on completion. I have challenged this fee as I am sure that the fee should be as explicitly stated in the lease (in today's money). I just wanted to check my understanding on this matter.

It seems to me that the freeholder is just trying it on and the solicitor doesn't seem to bat an eyelid. Can the fee vary from the lease for any reason; it's a straight fixed fee? The solicitor said that the fee is probably admin fees as the freeholder employs a management company to deal with the affairs. I don't know what to believe but even if it were an admin fee (for which there is no provision in the lease) it's definately not what I would call reasonable.

I have instructed the solictor that they should send a cheque for the stated fee in the lease and send a highlighted copy of the relevant paragraph by recorded delivery. This can then be used as proof of notification? The solicitor thinks that I will need to pay the £240 anyway but I don't think this is right from what I have read online.

Thanks in advance.

Why is the house leasehold? I know some are, but the majority are freehold.

As you have not yet exchanged I would say you are in the strongest position here, unless you're buying a house in a very desirable area with bidding wars etc.

If I were you I would ask the vendors to buy the freehold, which they're perfectly entitled to do depending on how long they have lived there. Of course, there will be a charge for that - which the vendors will ask you to pay - but it will be worth your while in my opinion.

propertyman

ValHaller wrote: »

Fair enough. Although I have learned from you and others that they can potentially be used for a lot of leasehold issues.

Great glad to have helped :beer:

Notice fees are exempt from that control and the LVT did comment that if they were a fee of £35/50 would be adequate.

In a case against a renowned landlord fees under their control were reduced considerably, and so they increased notice fees

The FTT(nee lVT) has jurisdiction over

1(1)In this Part of this Schedule “administration charge” means an amount payable by a tenant of a dwelling as part of or in addition to the rent which is payable, directly or indirectly—
(a)for or in connection with the grant of approvals under his lease, or applications for such approvals,
(b)for or in connection with the provision of information or documents by or on behalf of the landlord or a person who is party to his lease otherwise than as landlord or tenant,
(c)in respect of a failure by the tenant to make a payment by the due date to the landlord or a person who is party to his lease otherwise than as landlord or tenant, or
(d)in connection with a breach (or alleged breach) of a covenant or condition in his lease.