Registration and application charges from Freeholder for Lessee renting out flat.

CheekyMonkey68

Hi,  apologies if previously covered but couldn't find anything that relates.

Currently a leasehold owner, letting a leasehold flat on AST for a few years, The freeholder and managing agent (same people) have made contact requesting registration and application fees and form filling, requesting all info regarding name of tenant etc. Saying if I don't pay fees and fill form within 14 days they will start proceedings. The lease allows for letting, but the only paragraph in the lease in relation to letting is as below. Could someone give this simpleton any idea in simple terms what this means and am I wrong in thinking that I would only be required to apply and register a tenant/AST if it is within the last 7 years of the lease or am i getting confused. Any advice on how to respond appreciated. Thanks in advance!

Not to assign underlet or part with possession of the Demised Premises otherwise than by way of Transfer Underlease or Assignment of the whole or Mortgage or Charge of the whole and not during the last seven years of the term hereby granted to transfer or assign the Demised Premises without a previous consent in writing of the Lessor such consent not to be unreasonably withheld in the case of a respectable or responsible person but the Lessor shall not be required to consent to the transfer or assignment to a limited company unless two directors thereof join in the license or the transfer or assignment as sureties for the Company and jointly and severally covenant with the Lessor to pay the rent reserved by these presents and any damages accruing to the Lessor by reason of the failure of the Company to observe and perform the Lessee’s covenants and conditions herein contained.

eddddy

My reading of that is that you need written consent from the freeholder to let out your flat (but others might read it differently).

If that's the case, and you have let out the flat without the freeholder's consent, you would be in breach of your lease - and the freeholder can take legal action against you.

The freeholder can charge you a 'reasonable' fee for dealing with your application for consent. I guess that might be around £70 to £80 per hour for any admin work they have to do (plus any out-of-pocket costs they have to pay.)

CheekyMonkey68

eddddy said:

My reading of that is that you need written consent from the freeholder to let out your flat (but others might read it differently).

If that's the case, and you have let out the flat without the freeholder's consent, you would be in breach of your lease - and the freeholder can take legal action against you.

The freeholder can charge you a 'reasonable' fee for dealing with your application for consent. I guess that might be around £70 to £80 per hour for any admin work they have to do (plus any out-of-pocket costs they have to pay.)

Thanks eddddy, 

I interpreted the part 'and not during the last seven years of the term hereby granted to transfer or assign the Demised Premises without a previous consent in writing of the Lessor'

That consent is only needed to let the flat if its within the last 7 years of the lease, so think I may be wrong there?

Do you think the following fees sound reasonable?

Administration fee of £55
Application/registration fee of £180 for new AST period
Each year thereafter renewal of registration for AST £100

Would there be any other fees chargeable by freeholder or their management company?

Thank you for your help

eddddy

CheekyMonkey68 said:

Do you think the following fees sound reasonable?

Administration fee of £55
Application/registration fee of £180 for new AST period
Each year thereafter renewal of registration for AST £100

This is a tricky area.

The law says that they can charge you 'reasonable' fees - but they should only be covering their costs (employee costs plus expenses) - they shouldn't be making a profit.

So, for example, you could say "Please provide a breakdown of the £180 fee and the £100 fee"

(Or put another way "Please explain how your costs add-up to a total of £180 and £100")

TBH, I can't really see what they could be doing that would cost them £180 (or £100) - but they might come up with something credible.

But in general, you should almost always pay whatever they ask for (under protest), and then challenge it at a tribunal, if you want to. The potential costs of not paying could be very high.

CheekyMonkey68 said:

Would there be any other fees chargeable by freeholder or their management company?

If the freeholder has to do anything else as a result of you renting your flat out, then they can charge you a 'reasonable' fee for doing it ( to cover their costs).

But I can't think of anything else they'd normally have to do. 

CheekyMonkey68

Thank you for your insight eddddy, very much appreciated. You've been a great help!

Best regards