Freeholder subletting fee

My freeholders charge an extortionate £130 subletting fee, but I don’t have the energy or time to fight the amount.

However, every year they send an invoice around this time. I always reply saying that, since there has been no change of tenancy or contract, there is no registration fee to be paid.

My last tenancy started in October 2024 and that was when I last paid the fee. It has not even been a year.

What I am confused about is, can they argue that this is “licence fee” paid annually? My view is that this is only payable when there is a material change, such as new tenants or a new contract. Therefore , even after a year, if the contract has been left to rollover and nothing has changed then how can they still charge this?

The answer will be in your lease.

I know, and it only says the fee for registering a tenancy, it doesn’t say anything about it being an “annual licence”

Does this happen to be Estates & Management Ltd? If so I would not worry and just mark it as renewed tenancy and pay no fee.
They will take money off you if you offer it but make no effort in ensuring other landlords are registering or pet owners registering.
I am pretty convinced I am the only person on my complex who pays for sublet and pet consent despite most flats being rented or numerous pets.

Unless the lease says the fee is annual, I dont believe the management company have a legal basis to charge the fee annually.

1 Like

I used to have a lease that allowed for such a fee for the registration of a sublet. The freeholder tried to levy £200 pa for sublets on the basis that the money would be used to make good additional wear in the common parts of the building due to tenants moving in and out. I challenged this on the basis that I had never seen any remedial works and that the fee was substantially more than any work they did in registering a tenancy ie. literally a line entry in a spreadsheet. No checking of references or proof of identity that they claimed to do but never asked for supporting docs. I didn’t pay it for 7-8 years and eventually they gave up demanding it as they knew that the ridiculous sum was not justified or enforceable.

Yes, I have been renting out since 2013 and didn’t pay the fee for years.
Then they eventually found out I was renting, so I simply paid as I didn’t want them to try and retro charge.
I do begrudge paying it a lot, as I think it’s daylight robbery.
If the tenants change completely, then fair enough they need to have the names of the people living in the building, but not if it’s the same people and, in this case, it’s not even been a year!
Before sending an invoice they should send a courtesy email to ask if there has been any material change that requires a new registration.
I have a real issue with the leaseholding system, it needs a huge overhaul or be abolished altogether.

Just keep replying that theres been no change of tenant to register

This topic was automatically closed 90 days after the last reply. New replies are no longer allowed.