Freeholder wants to charge £130 for notifying let

highspiritz

The following was taken out of the lease and is the only parts that mention tenants or sub letting. I cant see where it tells me to pay them £130 for a let.

It does mention a reasonable fee of £40 + VAT under another paragraph but in my understanding that is in relation to notifying them on anything to do with sale or change of ownership etc.

Please share your thought on both points I copied from the lease. Im thinking of writing to them explaining they have no reason to expect even a penny from from as I do not require their permission to let. Correct me if I am wrong.

Thanks in advance.
"Not at any time during the term to:-

And let the property except by way of an assured shorthold tenancy agreement or any other form of agreement which does not create any rights of tenancy for the tenant after the term of any such agreement shall have expired and to provide to the management company within 14 days of the commencement of each and every such under letting written confirmation of the full names of all tenants together with details of the length and date of each under-letting TOGETHER ALSO WITH the correspondence address details of the Lessee for all matters concerning the Property including the service of invoices relating relating to the rents reserved under the terms of the lease"

Another point in the lease is as follows word for word.

“ To give written notice within 28 days to the lessor and to the management company (or that agents) of any assignment transfer mortgage charge grant of probate letters of administration order of court or other matter disposing of or affecting the property or devolution of or transfer of title to the same with a certified copy of the instrument effecting any such dealing AND ALSO to pay or cause to be paid at the same time to the Lessor and the Management Company such reasonable fee appropriate at the time of registration in respect of any such dealing (being a minimum sum of £40 plus VAT with regard to the notice fee payable to the Lessor) PROVIDED ALWAYS that in the case of a contemporaneous transfer and mortgage the fee shall only be payable on one of such matters.”

I believe this point is relating to everything but letting, like sale or part sale or transfer etc. Can I ignore this in regards to letting my property?

Or do I offer them the £40 + Vat and end of?

davidmcn

highspiritz wrote: »

To give written notice within 28 days to the lessor and to the management company (or that agents) of any assignment transfer mortgage charge grant of probate letters of administration order of court or other matter disposing of or affecting the property or devolution of or transfer of title to the same

I believe this point is relating to everything but letting, like sale or part sale or transfer etc.

Why don't you think it includes letting?

eddddy

The lease requires you to notify the Management Co when you let the property, so you should do that.

The law allows the Mgmt co to charge a 'reasonable' Admin Charge for this - but the law doesn't really define what 'reasonable' means.

So realistically, the Admin Charge should reflect the work that the Mgmt co has to do, plus any costs they have to pay out.

Back in 2012, a tribunal seemed to agree that a reasonable fee for this type of admin work is £50 per hour. So they ruled that a 'reasonable' fee for 'consent to let' in some specific cases was £40.

See: http://landschamber.decisions.tribunals.gov.uk//judgmentfiles/j823/LRX-33-34-76-102-2011.pdf

On that basis, you could ask your Mgmt Co what extra work they are doing to justify a £130 fee.


Ignoring a demand for payment may be a bad idea. They might send reminder letters, solicitor's letters etc - and they can probably charge you further fees for these.

If you reach deadlock, you should probably pay under protest (to avoid the risk of escalating 'late fees'), and then challenge the fee at a tribunal.

highspiritz

Thats the point. I dod notify the management company also the council and have the relevant license to let etc. All that is in hand. its the freeholder or Lessor that has now sent me a letter stating that I pay £130 now and £65 every time I renew or re-let. They are using e&m as their agents.

highspiritz

I could not make out any word in there that means letting, assigning and all others mentioned here relates to sales either directly or indirectly. Hence unless I am wrong in my understanding...

davidmcn

highspiritz wrote: »

I could not make out any word in there that means letting, assigning and all others mentioned here relates to sales either directly or indirectly. Hence unless I am wrong in my understanding...

Assuming you're replying to me (please use the "Quote" button) I would say it's a "dealing" with the leaseholder's interest, and it certainly "affects" the property.

highspiritz

Davidmcn - I am the leaseholder and the management company is notified and dealt with along with consent to let from them and the council. its the Lessor or Freeholder coming to me with a beggars hand now that I am trying to avoid paying unless its in the lease. Management company, mortgage company and council have all taken their cut for me letting my property. Now this Freeholder agent turns up with some amount picked up from the air.


eddy I have already got permission and notified the management company as per the lease. Can you anything in there in regards to notifying the Lesssor or Freeholder ?

EachPenny

highspiritz wrote: »

“ To give written notice within 28 days to the lessor and to the management company (or that agents) of any assignment transfer mortgage charge grant of probate letters of administration order of court or other matter disposing of or affecting the property or devolution of or transfer of title to the same with a certified copy of the instrument effecting any such dealing AND ALSO to pay or cause to be paid at the same time to the Lessor and the Management Company such reasonable fee appropriate at the time of registration in respect of any such dealing (being a minimum sum of £40 plus VAT with regard to the notice fee payable to the Lessor) PROVIDED ALWAYS that in the case of a contemporaneous transfer and mortgage the fee shall only be payable on one of such matters.”

Reasonable Fees are payable to the Lessor and the Management Company.

The £40 +VAT figure is the minimum payable to the Lessor - the reasonable fee to the management company is separate and an unstated amount.

highspiritz

I agree that I should pay £40 towards this. I will now email the freeholder and quote the tribunal cases and offer them £40 to end the matter. Will keep you all posted in their reply.