OM Property Management – Sublet fees and ‘license’

by Readers Question

10:32 AM, 26th November 2014
About 4 years ago

OM Property Management – Sublet fees and ‘license’

Make Text Bigger
OM Property Management – Sublet fees and ‘license’

I suspect I can here the groans already… OM Property Management - Sublet fees and license

I’ve owned a Buy To Let flat for about 10 years. During the purchase consent was given to sublet.

Over recent years I’ve been getting correspondence from OM about a License and other fees and I’ll be honest, I always ignore them as I disagree with their charges. It gets to a point and then I don’t hear any more for around a year and then they start it up again. We are currently on their 3rd reminder and they are now mentioning about contacting my lender.

When I purchased the property there was no mention about a license or constant sublet fees which is why I wont even enter into correspondence with them, and I also read on an OM specific forum some years ago not to enter into correspondence.

I just wondered if anyone had had any experience of legal action with them at all?

Thanks

Mark Lynham



Comments

Mark Alexander

10:34 AM, 26th November 2014
About 4 years ago

Hi Mark

If you are confident they've got no right to charge you then let them take you to court.

In the meantime, and for your own protection, I strongly recommend that you write to your lender explaining that you are in dispute with OM Property Management and that if the Court rules against you that you have the funds to pay.
.

Mark Lynham

10:50 AM, 26th November 2014
About 4 years ago

Reply to the comment left by "Mark Alexander" at "26/11/2014 - 10:34":

Thats a good idea Mark, thank you.

I've looked through the lease and it mentions permission to sublet but it doesnt mention anything at all about a license or having to get permission for all new tenancies and on renewal of tenancies to an existing tenant.

OM werent on the scene when i first purchased the flat.... when i first heard from them they wanted over £300 for this 'License'...... money for old rope if you ask me..

Mark Alexander

11:02 AM, 26th November 2014
About 4 years ago

Reply to the comment left by "Mark Lynham" at "26/11/2014 - 10:50":

Also see these discussion threads on Property118 >>> http://goo.gl/JLAKyE

It seems that such fees will eventually be outlawed but there is also case law suggesting that £40 is a "reasonable" fee 🙂
.

Mark Lynham

11:11 AM, 26th November 2014
About 4 years ago

Reply to the comment left by "Mark Alexander" at "26/11/2014 - 11:02":

Many thanks mark, much appreciated

BOI BTL Customer

16:04 PM, 26th November 2014
About 4 years ago

I have the same issues with a company called Freehold Managers- my lease says I have to pay£30 each time I get a new tenant but they hound me constantly and basically send me fake invoices for a "notice of registration" they say I need to have. They also demand I contact them after each letter and put in writing I don't have a new tenant so they will have written evidence for when (not if- they are soooo agressive it's untrue) they take me to court! I wish these sharks could be regulated!

Kev Brooke-stowe

17:00 PM, 26th November 2014
About 4 years ago

I have had an issue with Freehold property management for the last 15 years trying to enforce their insurance saying that it was a requirement of the lease when in fact it wasn't.
I wrote called and finally just ignored them. I have approximately 40 threatening letters of legal action including forefeture of lease, which i did defend. Then they've threatened court action so I said go ahead. I insisted that the court case was held in my locality which is my right, and they duly sent a Solicitor to prosecute me.
I produced all of my evidence to the judge and he threw the case out, as I thought he would.
All the harassment has stopped for a couple of years. They have now started again. Roll on court case two? What a bunch of idiotic !&##%€ers.
Kev

Colin Dartnell

17:30 PM, 26th November 2014
About 4 years ago

I had the same I have 3 flats managed by OM they tried it on with me. If I remember I gave my solicitor looked through the lease and said there was no mention of fees and they were told to go away and they never came back!

Romano Gatto

8:50 AM, 29th November 2014
About 4 years ago

Mark,

I have a flat managed by OMPM and had EXACTLY the same issue. You need to take a firm line with them and you can start by using this as the basis of rejecting their claim (LVT has ruled their charges are unreasonable):

http://www.remus.uk.com/_files_/auto_files/5fe642d87a1fe678e45f9100665f8e33.pdf

I quoted the the same thing and offered - from memory - £75 as 'reasonable'. They replied that 'each case was individual' and therefore the LVT didn't apply. I replied back to say that was nonsense because the ruling was EXACTLY the same charge from EXACTLY the same provider. I then said I am declining any further correspondence with them and would raise it with the LVT. It took a long while (months) for the reply to the first letter but much less time for the second.

Peverel / OMPM are the worst company I have dealt with in my years as a property investor and landlord. They charge rip off prices yet their customer service levels are alternately infuriating and laughable.

Stand your grand! Write to them and cc the LVT.

Best wishes,

RG

Mark Lynham

13:57 PM, 24th June 2015
About 3 years ago

just an update and this is with regards to another property with freehold Managers that i have refused to respond to as i belive that is the best course of action..

They have written saying they have placed the account 'in dispute'.... and then,.. 'in dispute means that whilst we will not be persuing you further regarding the breach, the matter will need to be addressed at some point in the future. This will be particularly important if you wish to sell your property, re-mortgage or gain ay consent which can be problematic whilst your account is in dispute.

just thought i'd share..

Advance Block Management

13:30 PM, 26th June 2015
About 3 years ago

Thats them saying they will get the money eventually when you sell the property as they will highligh that your in arrears to the potential buyer, which may even put them off buying the property.

Oh dear.

Thanks for sharing.

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Patrick Collinson has got it wrong yet again!

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More