Underletting & "Registration Fee"

mfawcett1950

I have been paying a fee of £120 every year for each of my properties. This year I refused to pay the fees for 2 properties on the grounds that the tenants had remained in situ, which I now realise was not a valid argument. The landlords solicitor sent me a letter before action concerning one of the properties claiming that I was in breach of the head lease and demanding the fee of £120 plus their costs. I wrote back pointing out exactly what my obligations are and that half of the fees are payable to the Management Company under the terms of the Head Lease and that I have proof that the agent has been taking these fees and not passing them on. I also cited the Tribunal case of Rudnay v Samnas where a fee of £48 was declared to be reasonable.

The solicitor has recently agreed to accept a fee of £48. I am going to bring a case in the Small Claims Court to try to recover the fees they have overcharged me for doing unnecessary work and also collected fraudulently on behalf of the Management Company. Watch this space!

Sundmorning

I have a similar problem. Freeholder recently changed. (I did confirm I wished to buy freehold but not enough leaseholders wanted to - bet they regret now). So now new Managing agent wants £120 each new AST tenancy (which is will argue to settle at £50 a reasonable amount). However the problem is that they want :
1. Copy of references
2. Names and contact telephone numbers of tenants
3.copy of AST agreement.
I feel it’s an invasion of privacy, of both myself and particularly the tenant , to force me divulge this information. They are threatening me with forfeiture of the lease. Surely it is against GDPR and also HRA protocols for me to give them this info. What if it is a tenant who is a domestic violence victim who doesn’t want this info given out ?
Also they’ve said that section 126 and 127 of the Act will be used to obtain forfeiture. I thought that related to delapidations, not to not giving them info. Any ideas ?

Sundmorning

Sorry that should have said they’re quoting 146 and 147.

mrschaucer

You are only legally bound by what your lease says. What the managing agent "wants" and what your lease obliges you to do might be two very different things.

CJJ86

Hi
How would you go forward if you feel the underletting registration fee is excessive? I'm being asked for £138 now to register with a further £90 for the renewal.
If im following this correctly that means if my existing tenant requests renewal every 6 months I have to pay £90 every time. Any advice would be good, new to this and it's just for 1 property.

eddddy

CJJ86 wrote: »

Hi
How would you go forward if you feel the underletting registration fee is excessive? I'm being asked for £138 now to register with a further £90 for the renewal.
If im following this correctly that means if my existing tenant requests renewal every 6 months I have to pay £90 every time. Any advice would be good, new to this and it's just for 1 property.

It's best to start a new thread, otherwise people get confused and start answering the original thread. But anyway...

• Start by reading your lease to see what is says about what you need to 'register'.

• Assuming the lease says you must register, but mentions no fee, the fee must be reasonable

So you could try telling your freeholder the following:

• you believe that £40 is a reasonable fee for registration

• In 2012, a tribunal decided that £40 was a reasonable fee for consent to let in 3 cases
  See: http://landschamber.decisions.tribunals.gov.uk//Aspx/view.aspx?id=823 (and download the the document).

• If the freeholder insists on charging £138/£90, you require a breakdown of how they reach those amounts

• And if they insist on charging £138/£90, you will pay under protest and challenge it at a tribunal

A few people have posted here that their freeholders backed down and charged £40 when challenged. But who knows if yours will?