Any experts in Leaseholds?!

brucethefish

Hi

I forgot to submit my insurance details as part of my lease under section 164 commonhold leasehold reform act.

They asked me to pay £60 as a consent fee which I refused to do - it doesnt state anywhere in my lease that this can be charged. The first year I moved in I wasnt aware I had to do any of this and my solicitor paid the fee which was then £30 - they never advised that this had increased. I did actually offer this but they refused.

Finally the lease states only mentions insurance against fire damage, not full buildings.

Today I received this letter...where do I go from here?!

With reference to our previous correspondence we see that we have not received payment of the consent fee required.

In the circumstances, we must therefore treat you as being in breach of the insurance covenants in the lease, and the Landlord reserves the right to commence enforcement proceedings if the breech persists.

We have informed your mortgage lender of the position and are obliged to advise any future purchasers, their professional advisors and any future mortgage lender of the position

Thanks in advance

Tiglet2

Did you get a copy of the leasehold management pack when you purchased the property? The pack will contain details of buildings insurance.

With regard to the consent fee, unfortunately you have to have the consent (for??) and if the charge is £60 then you will have to pay it - these fees are not up for negotiation and if you refuse to pay it, then when you come to sell, the previous owner's name will still be on the records for whatever the consent was needed for.

brucethefish

No I didnt get anything.

So if I pay it it will go away basically?

What action could they potentially take?

Tiglet2

Is the flat part of a block, with a management company looking after the communal areas? Or is it a converted house? Or a leasehold house? There should be buildings insurance in place by the management company or landlord. There should be a policy schedule within the leasehold pack. It would be very unusual not to have been given a copy when you purchased.

Can you be a bit more specific about what the consent was for? Some consents are just for letting the landlord/freeholder/management company know that there is a new owner, or that there is a charge on the property with a new lender. You do need to pay for these, as your name or your lender's name won't be entered onto their records and all service charges/ground rent accounts will be in the previous owner's name. If the signed consent has not been submitted to Land Registry, then you will not be registered as the proprietor of the property. Your lender would not be impressed to learn that their charge on the property hasn't been registered.

How long have you owned the property?

brucethefish

Hi,

Its a mid terrace, I have a mortgage for it. They basically have their approved company, but if I want to use my own I have to submit info in the prescribed form within I think 10 days of the expiry of buildings insurance.

I originally bought it with my wife 10 years ago but we parted company, I remortgaged 3 years ago then again a year ago, all with different companies (Northern Rock, Halifax and now HSBC)

Tiglet2

Hopefully someone else will help you - I deal with leasehold flats not houses. Hope you get some answers.

eddddy

£60 does sound a bit steep.

The law says all admin fees that are not stated in the lease must be 'reasonable' - i.e. they must reflect the work the freeholder has to do.

I suspect that somebody employed by the freeholder just reads through your policy, and then files it - maybe 10 or 15 mins work. If so, £10 or £20 might be more reasonable.

But it sounds like you've challenged the fee, and the freeholder won't back down. So the only other route is to pay it 'under protest', and go to the tribunal.

TBH, I'm not sure it's worth the hassle of a tribunal for the sum involved.

The next challenge might be that they charge you for sending a letter to your mortgage lender and/or charge you late fees.

Maybe tell the freeholder that you are paying under protest anyway - then if more charges follow, pay them under protest as well. Then you can consider whether you want to take it to tribunal.

brucethefish

Hi

They did write to my mortgage co late last year, but they replied basically saying they werent interested but to sort it out - I suppose as long as Im paying them and they are listed on the deeds they dont really care? I havent received any notification of charges from either party though.

Could I ask for a invoice detailing the work carried out? I have only received letters requesting that payment be made as a consent fee