Neil Patterson

Registered with Property118.com
Monday 7th February 2011

Member of The Landlords Union

Insures properties through a broker recommended by Property118
Yes


Latest Comments

Total Number of Property118 Comments: 2615

Neil Patterson

8:25 AM, 26th September 2018
About 2 hours ago

New Landlord Association seeking pledges

Hi Larry,

When you are ready give me all the details and any content/text and I will build an article with you that P118 can promote far and wide 🙂
Online, Facebook, Twitter etc.... Read More

Neil Patterson

16:25 PM, 25th September 2018
About 18 hours ago

Excessive charges for licence to underlet

These consent to let fees are a very comment question and yes you need to check the conditions in your lease first.

However, this fee plus the solicitors fees is the most I have seen yet by some margin!

From the Leasehold Advisory Service >> https://www.lease-advice.org/article/your-rights-when-subletting/

"An Absolute prohibition on subletting is rare but can be found in some leases. If present, then it is hard to avoid. It is not a term that an individual leaseholder could apply to the “Appropriate Tribunal” to vary under section 35 of the Landlord & Tenant Act 1987.

In England the Appropriate Tribunal is the First tier Tribunal(Property Chamber) and in Wales it is the Leasehold Valuation Tribunal.

An absolute bar on subletting could be the subject of an application under section 37 of the 1987 Act, provided a substantial majority of the leaseholders are in favour of variation. The most common clause requires the leaseholder to obtain the freeholders consent to subletting (a qualified covenant). The clause may require the leaseholder to provide a copy of the tenancy agreement and covenants to be entered directly with the freeholder.

The clause may also say consent should not be unreasonably refused, but in any event the Landlord & Tenant Act 1927 section 19(1) provides that the landlords consent should not be unreasonably refused for subletting.

Also, where a written application is served on the person who may consent to the subletting they owe, pursuant to Section 1 of the Landlord & Tenant Act 1988 , a statutory duty to the leaseholder, within a reasonable time: –

To give consent unless it is reasonable not to do so
To serve notice of their decision whether to give consent including any conditions and if withheld, the reasons.
The onus of proof is on the person refusing the consent, or imposing conditions, to show that these are reasonable and that they notified the leaseholder within a reasonable time.

The leaseholders remedies against unreasonably refused consent to subletting are as follows:-

To proceed without consent. This is not advisable as it is a breach of the lease and enforcement action could be taken by the freeholder, e.g. forfeiture.
To apply to a County Court for a declaration that the freeholder is unreasonably withholding consent. This can be expensive, even if successful.
To apply to the County Court for damages for breach of statutory duty if the landlord has failed to comply with the provisions of section 1 of the Landlord & Tenant Act 1988. This is an additional remedy to applying for a declaration that consent has been unreasonably refused.

Schedule 11 Part 1 of the Commonhold & Leasehold Reform Act 2002 defines an administration charge.

The lease may specifically refer to an administration charge being payable for the freeholder’s licence or consent. If not, the Landlord & Tenant Act 1927, section 19 allows the freeholder to “…require payment of a reasonable sum in respect of any legal or other expenses incurred in connection with such licence or consent..”

A variable administration charge, such as a fee for subletting, must be reasonable.

Any demand for an administration charge should be accompanied by a summary of leaseholders’ rights and obligations. There is a right to withhold payment if the summary is not provided."... Read More

Neil Patterson

15:04 PM, 25th September 2018
About 19 hours ago

Finance moving forward

Hi Mark,

I have added some helpful articles linked above in my Editors note :)... Read More

Neil Patterson

14:44 PM, 25th September 2018
About 20 hours ago

Advice needed on re-finance of inherited properties?

Hi Nikki,

Unfortunately you are not really selling yourself to lenders with all the conflicting criteria. You will definitely need a commercial finance broker to even consider finding a lender that can consider all of the criteria in one go.

If you do think you would like help please email me all your details on npatterson@property118.com and I will get one of the team to discuss what your options might be.... Read More

Neil Patterson

11:34 AM, 25th September 2018
About 23 hours ago

Is there a minimum payment period that must be given?

From The Leasehold Advisory service >> https://www.lease-advice.org/article/ground-rent-a-demanding-notice/

"April 2012

Since the 28th February 2005 any demand for ground rent by a freeholder, or their managing agents, must be made in a “prescribed form” as set out in Section 166 of the Commonhold & Leasehold Reform Act 2002.

If the ground rent is not demanded in this prescribed form, and completed in accordance with section 166, the tenant (leaseholder) is not liable to make payment unless, and until, it is properly demanded.

Click here to download the form of rent demand notice. At first glance the form looks reasonably straight forward. However, it is easy to complete it incorrectly, and many freeholders, or their advisers, do get this wrong.

The date for payment of the ground rent given in the notice cannot be earlier than 30 days from the date notice is given, nor more than 60 days after that date. Overriding this is the provision that the date for payment cannot be earlier than the date set out in the lease itself.

Complications can arise where the freeholder is attempting to recover several years’ arrears of ground rent. The best advice for a freeholder is to use separate forms for each period of ground rent owing.

The notes for leaseholders and landlords on the form should be read carefully to ensure compliance from a freeholder’s and leaseholder’s point of view.

Section 166 provides that the notice must be in the prescribed form and “may” be sent by post. If the notice is sent by post, it must be addressed to the tenant at the dwelling on which the ground rent is payable, unless the tenant has notified the landlord in writing of a different address in England & Wales at which he wishes to be given notices under this section. (In which case it must be addressed to him there)

In reality, the failure by a freeholder to demand ground rent, properly, may only mean that payment of the ground rent is delayed until the freeholder serves a proper demand. It does not mean that the ability to demand ground rent has been lost. However If a freeholder, or their agents, attempt to add legal or administration charges, for non-payment, based on an incorrect demand notice, such charges will not be payable. If necessary the leaseholder should seek a determination from the appropriate tribunal, being the First-tier Tribunal (Property Chamber) in England, or the Leasehold Valuation Tribunal in Wales.

The form contains a reference to section 167 of the 2002 Act. This section provides that a landlord cannot use the forfeiture procedure under the lease unless the amount owed for ground rent, service charge or administration charges (or a combination of them) is more than ÂŁ350. However, the forfeiture procedure can be used even if the amount is less than ÂŁ350, if it has been outstanding for more than three years. Ground rent can be recovered for up to six years in arrears.

In conclusion, the bad pun in the title of this article is correct the Ground Rent demand can be a “demanding notice” to complete correctly.... Read More