GE Money - unfair charge for consent?

Philski2000

I live in a building divided into 5 flats, and each of us owns an equal share of the freehold. We are in the process of extending the leases to 999 years, consent for which needs to be obtained from our mortgage companies. This has been obtained in every case without any issues.

However, I also have a small secured loan on my property with GE Money Home Lending, and their permission also needs to be obtained. To gain their consent, they wish to charge £100 administration fee, and £293.75 for their solicitors to read and approve the new lease (although the only part of it that is changing is the term of the lease). There is no provision for such a charge in the Terms & Conditions I signed when taking out the loan, a fact confirmed by their Customer Services Department this morning - instead, it is a 'discretionary charge' for something that lies outside the agreement. Are they right?

I am afraid that they might just stick two fingers up at me and refuse to consent to the lease extension unless I pay the charge, and I feel they are taking advantage of their position. As I mentioned, five mortgage companies gave their consent without a problem, and certainly no request for payment.

I have written a letter of complaint as a first step, prior to contacting the Financial Ombudsman about this. The reason for posting is to ask whether anyone has encountered a similar situation, or who knows where I stand from a legal standpoint.

Thanks in advance for any advice!