Fees charges

keepitlegal

The property we own is a 3 bedroom detached dwelling built in 1988.
We have been granted planning permission for a ground floor extension 4m x 3m, this is to the rear of the property in our garden.
The house is leasehold, the ground rent is £30 per year.
We informed the leasehold company of our intentions to extend the property, we had to pay a consideration fee of £65+vat (£78). We have just received a further communication from them saying they require us to pay a landlords consent grant fee of £840 for this type of alteration/addition.
So for an extension costing £10,000 the leasehold company want us to pay them £918, nearly 10% of the building costs, or more than 30x our annual rent, is this legal as it seems like a licence to print money?
We have asked for your comments first as the lease holding company only work 10.00 hrs till 13.00 hrs 4 days per week.
Keepitlegal

anselld

What does the lease say? They can only charge fees which are specified in the lease.

eddddy

In general, the law allows freeholders to charge a 'reasonable' fee to grant a consent (unless your lease says otherwise).

'Reasonable' means it should reflect the work involved and/or the charges they incur.

So if, for example, they are instructing an architect or surveyor to check your plans, and having a deed of variation prepared for the lease to show the new leaseplan - £840 might be 'reasonable'.

But if an admin person is just going to take a quick look at your plans, file them away and send you a standard letter - £50 might be 'reasonable'.

You could ask your freeholder to give you a breakdown of the £840, to help you judge if it is 'reasonable'.


(If you think it's not 'reasonable', you could try saying that if they insist on a payment of £840, you will pay 'under protest' and challenge it at a tribunal. They might re-think.)

buggy_boy

Would it be an idea to see how much it would cost to buy the freehold?

Doozergirl

I'm more concerned at how a small extension costs as little as £10k. Are you building it yourselves?

keepitlegal

anselld wrote: »

What does the lease say? They can only charge fees which are specified in the lease.

A fee is payable, no actual fee figures are given in the lease.
Thanks

keepitlegal

eddddy wrote: »

In general, the law allows freeholders to charge a 'reasonable' fee to grant a consent (unless your lease says otherwise).

'Reasonable' means it should reflect the work involved and/or the charges they incur.

So if, for example, they are instructing an architect or surveyor to check your plans, and having a deed of variation prepared for the lease to show the new leaseplan - £840 might be 'reasonable'.

But if an admin person is just going to take a quick look at your plans, file them away and send you a standard letter - £50 might be 'reasonable'.

You could ask your freeholder to give you a breakdown of the £840, to help you judge if it is 'reasonable'.


(If you think it's not 'reasonable', you could try saying that if they insist on a payment of £840, you will pay 'under protest' and challenge it at a tribunal. They might re-think.)

My wife rang them this morning and the ‘fee’ is just a fee they charge! No mention of any actual costs for them to reclaim.
Thanks

keepitlegal

Doozergirl wrote: »

I'm more concerned at how a small extension costs as little as £10k. Are you building it yourselves?

Eh, let’s just say we are not concerned.
Thanks for your concern though.

need_an_answer

keepitlegal wrote: »

Eh, let!!!8217;s just say we are not concerned.
Thanks for your concern though.

Don't bat away doozergirls comments about raising concern of price of extensions, she's very knowledgeable with renovation and building work and its costings.

keepitlegal

need_an_answer wrote: »

Don't bat away doozergirls comments about raising concern of price of extensions, she's very knowledgeable with renovation and building work and its costings.

I’m not, I’ve thanked her for her concern, but there are some things best not discussed on an open forum for all to see.

eddddy

keepitlegal wrote: »

My wife rang them this morning and the ‘fee’ is just a fee they charge! No mention of any actual costs for them to reclaim.

So if you tell them (perhaps in writing) that you want a break down of their fee, to ensure that it is reasonable - and they refuse...

... I imagine that would work in your favour at a tribunal.