Subletting fees likely to be outlawed
The Leasehold Knowledge Partnership “LKP” recently reported that the Law Commission is going to examine subletting fees charged by freeholders and their managers and speculation is rife that they will be outlawed for good. LKP have advised anyone selling or renting out a flat should keep all documentation with a view to making a claim in two and half years time.
LKP claim to be deluged with enquiries about subletting fees, often where freeholders and their managing agents are plucking figures from the air for a sublet consent.
The tribunals have dealt with countless cases, but there is no binding decision on what would be a fair sublet consent. Most freeholders have to give consent to a sublet, usually followed by the word “such consent not to be unreasonably withheld”.
A recent statement from the Law Commission can be found here
Thank you to Property118 member Karen Peel for bringing this to my attention.
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Member Since September 2014 - Comments: 2
10:25 AM, 30th September 2014, About 12 years ago
Its a good news for the long lease holders who have heavily invested in the UK and every time they intend to sublet their property they have to apply for a licence to sublet which cost around a £1000.00 . Service charges are on top of this licence fee.
Member Since February 2019 - Comments: 2
3:26 PM, 20th August 2020, About 6 years ago
Hi Mark,
Wondered if you have any magic template letter for an excessive ground rent demand. Mine’s just hiked up about 300%.
Cheers
John
[email protected]
Member Since May 2016 - Comments: 4
5:16 PM, 5th April 2023, About 3 years ago
Hi
Just received a £150 demand (£75 renewal) for subletting from E&M, never had one in the last 15 years.
My lease it states:
(i) The Lessee shall not sub-let the whole or any part of the devised premises save that an underletting of the whole of the demised premises (with the prior consent of O.M. Limited and any mortgagee of the
demised premises) is permitted in the case of a term certain not exceeding three years let at a rack rent
There isn’t a mention of payment of admin charges
So my question is are Subletting fees likely to be outlawed?