My lease requires that I notify the Freeholder if I sublet my property(flat) and pay a ‘reasonable fee’ for registration. Its a money making exercise but it cant be avioded.
So what do other Landlords pay for this ‘service’ to there Freeholders agent?
Could it be that I am being unreasonable in my expectation that it should be in line with what the law limits me the charge tenants for changes to a rental agreement?
I havent stated what I am expected to pay because I dont what to influence the discussion any more than I obviously have. Thanks in advance
I recently completed on a property and was faced with a similar charge. From memory I think it was around £120 which I viewed as an admin charge.
I wouldn’t pay more than £60
I had a battle with my freeholder on the inflated fee they wanted…they sent me this.
“Please note that a notice of underletting fee is not an administration charge for the purposes of Schedule 11 of the Commonhold and Leasehold Reform Act 2002, and therefore a Leasehold Valuation Tribunal does not have the power to decide whether or not such a fee is reasonable.”
I offered them £60 and they accepted. They wanted £160
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In our lease the fee is stated as a ‘registration fee’ for reciept of the underlettin notice. Looks like the freehold was sold on and the previously accepted payment of £60 has been inflated to more than twice that. Im advised it could be challenged in the county court.
I think there is case law capping the fee, but I’m not sure if its still followed. You could check with lease-advice.org.
Whats your view on the below?
I believe that is correct Mark. Its a contractual matter not a statutory one. I think the case I was talking about was following an OFT ruling on unfair terms in consumer contracts, but I may be mis-remembering.
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