Licence to assign

blinko

Hey guys I wanted to ask you what a licence to assign is the reason I ask is because I'm being charged £750 or the seller is to buy a leasehold car park space (it comes with the flat )

Seems extortionate , i don't even want the car park space lol 

Or is this just another lease hold money making exercise

Thanks 

user1977

It's the consent by the freeholder to the leaseholder selling their interest.

Alderbank

Licence to assign is because the landlord has chosen to insert a clause in the lease to say the seller must obtain the landlord's permission to sell to you.

Landlord's solicitors say this might sound like an easy way to make money and assignees often view them in a negative light but they say tenants should be grateful to the landlord for being so thoughtful. They say these licences can be viewed as good practice and management by the landlord of a building.  They are essentially vetting and approving the incoming owners of the flats in the building to ensure they are of a suitable character and a certain calibre so as to maintain the harmony of all tenants in the building.

tl:dr Yes, just another lease hold money making exercise.

If it's any consolation, £750 is considered cheap. Solicitors say that because of the amount of thoughtfulness needed to prepare the licence the cost should be in the range £750 - £2,000.

user1977

Given that it's the assignor incurring the cost for the privilege of disposing of their interest in the lease - why is the OP being asked to pay it? (any more than they'd pay the vendor's legal fees or estate agents)

blinko

Thanks for the replies guys , just to confirm this is only for the car park space which is own by a separate free holder and has separate lease (not for the flat )

Is there any way to not buy the car park space , challenge the fee or I guess the only other way is to let the car park space lease run down 

I've never encountered this kind of fee before 

bouicca21

OP, you may not need a parking space but having one might make a difference to the attractiveness of your flat when you come to sell, especially if parking is a problem in that neighbourhood.  And presumably in the meantime you could rent it out?

user1977

blinko said:

Is there any way to not buy the car park space , challenge the fee or I guess the only other way is to let the car park space lease run down 

In theory you could ask the vendor not to sell it to you, but then they've got the hassle of finding another buyer for it - and it's often the case that the spaces can only be owned by people who own flats in the development.

blinko

Just to clarify its a Victorian conversion, the space at the rear is shared between 5 other lease holders for the car park 

zagubov

On other threads posters are arguing that it's a boon having a car parking space and it's putting people off buying if you can't sell them one.
You'd be safeguarding the saleability of your property and maintaining its value.
I (and many others) would bite their hand off.

ciderboy2009

If you're buying with a mortgage then you should also bear in mind that the mortgage company might want to re-value the property if if it's not got a parking space