Extra unexpected fee to assign deed of covenant to Freeholder?

Extra unexpected fee to assign deed of covenant to Freeholder?

by Readers Question

Guest Author

7:32 AM, 12th April 2024, About 2 months ago 1

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I decided to gift a second home to my son and engaged a solicitor to conduct the transfer.

The solicitor is now asking for £450 to assign a deed of covenant to the freeholder. Before this l gave the name of the management company to the solicitor, to speed things up l included a list of tariffs. Then l realised that the freeholder needed to be assigned also and gave them the freeholder details.

The freeholder came back with the £450 charge for the deed of covenant. l have already paid the solicitor’s bill and disbursements and received a letter stating that the transfer has been completed successfully.

Do l have to pay this given that the solicitor has said in writing the transfer is completed? Should the solicitor have known that the freeholder needed to be informed without me having to tell them and what can l do if they insist on payment before they will deal with the freeholder?

Many thanks

George

“Freeholders ask leaseholders to sign deeds of covenants to ensure they adhere to a set of promises (covenants). If there is a change in leaseholder these promises will be required to be signed again.”


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Comments

Judith Wordsworth

11:03 AM, 13th April 2024, About 2 months ago

The lease should detail the fee for assignment. If not Freeholders should charge only what is a reasonable figure. I was paying £250 30+ years ago.

Some leases even require an assignment fee for each change of tenant.

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