Freeholder administration charges for permission to let?

Freeholder administration charges for permission to let?

0:04 AM, 10th January 2023, About A year ago 15

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Hello, I own a leasehold flat with 900 years lease, no service charges and peppercorn ground rent. My lease states I need to obtain permission from the management company in order to let the flat out, and they are entitled to charge surveyor’s fees of no more than 4 Guineas.

After emailing my management company to request a permission, first they said I don’t need one and the next day I received another email stating there is a £500 premium, plus surveyor’s charges plus solicitor’s fees which all amounts to £2,600.

I emailed back quoting the law and various sources that this seems unreasonable, as well as stating that the lease only requires surveyor’s charges which I’m happy to pay, but they received a response from their solicitor saying they have done this multiple times with other properties on my street all on the same agreed basis.

I need help and opinion on whether I have any rights and whether it is worth taking this to tribunal.

Thank you
V


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Comments

geester24

23:54 PM, 10th January 2023, About A year ago

I had this when the freeholder asked for £50 for permission to let. I duly paid but the next year they wanted £100. I checked it out and was advised to ask for which clause in the leasehold allowed this. No response, I don’t pay and I never received anything again. It was a phishing exercise by a large freeholder basically. Some léases may allow it but some didn’t but they just chanced their arm.

V

10:46 AM, 20th July 2023, About 10 months ago

I posted this question, however it doesn't come up on my profile.
To update you: I applied to the Residential Property Tribunal in March and I have a mediation scheduled in a few days. The management company's solicitor has confirmed the demands (which are now slightly higher - inflation):
"
£500 - this is a nominal premium for the landlord dealing with the tenant's request for consent to part with possession and underlet the property, such consent being required under the lease
£1500+VAT - legal fees - These are the landlord's fees for their solicitors to deal with the tenant's request to part with possession and underlet the property by way of licence to underlet setting out the conditions for the consent being given to effect the lease obligations to neighbouring properties (also owner by the landlord) to protect the landlord's capital investment and obligations to neighbouring tenants. (5 hours of work in connection with work on this matter that has been incurred, dealing in correspondence with the Applicant since July 2022 and to incorporate the work required to prepare the licence to underlet for the property and deal with completion of the licence"
(He sent one email in 2022 in response to my emails to which I haven't responded directly to the solicitor, only to the management company).
@250 + VAT - costs incurred by the Landlord through surveyor's costs
"
(in the end they say)
"The lease does make reference, as indicated by the applicant in her statement, to surveyor's fees for inspecting the property. I confirm that the Landlord's surveyor's do no propose to undertake an inspection on this occasion so as to seek to minimise costs" Ha
They also state:
" I confirm that these fees are not administrative charges nor service charges. There are no service charges that are claimed or charged by the Landlord in respect of the property. These will be fees reasonably incurred by the Landlord in dealing with the application by the Applicant with a view to properly regularising the provision of the consent and safeguarding their capital investment in the property through the terms of the licence to underlet. The licence to underlet will formally record by deed the request by the Applicant and the consent by the Landlord and the conditions for the consent being given to comply with the lease provisions and obligations owing to neighbouring tenants of the landlord."
Lease remaining 930 years, ground rend £5 per year, my own building insurance and no service charges. We are completely responsible for the upkeep of the properties, which are 4 flats each.
I have spoken to Lease advice who also think this is just a way of them making money, as my lease doesn't require me to pay any of this, but I am wondering if there is anything else I am missing. Particularly around the fact that they demand the issue of licence to underlet and not calling it an administration charge.
Thank you all!
V

Puzzler

14:06 PM, 21st July 2023, About 10 months ago

Please let us know how you get on - mediation is not a tribunal and may not result in a decision. Search the tribunals on Lease.org

It's certainly not usual to jump through those hoops, you normally just have to include compliance with the lease in the tenancy agreement

V

8:16 AM, 26th August 2023, About 8 months ago

Reply to the comment left by Puzzler at 21/07/2023 - 14:06
Hi Puzzler, the mediation went ahead and was quite successful. We agreed on a settlement in the end which was a lot lower than the £2600 which they initially asked for. I was very well prepared and had all previous court decisions, as well as multiple materials on Administration charges available online. They were quite keen to find middle ground as they knew they had no foundation to ask for such high fees, which helped to end this quicker and with a positive outcome for both sides. I would advise anyone who has been asked to pay unreasonable fees to seek their rights and use the tribunal.

Puzzler

11:18 AM, 26th August 2023, About 8 months ago

Reply to the comment left by V at 26/08/2023 - 08:16
That's great news, would you post the case reference please?

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