When is an admin charge not an admin charge?

by Readers Question

8:49 AM, 9th August 2019
About 8 months ago

When is an admin charge not an admin charge?

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When is an admin charge not an admin charge?

I seem to have a slight variation on an old problem and my searches for it do not yield an answer.

The management company for the Freeholder is demanding £138 for a notice to sublet. I have referenced the tribunal findings that a maximum of £40 is allowed for such things, but they point out that it is not an ‘administration fee’ but a ‘notice to sublet’ fee and the leasehold valuation tribunal has ruled in the past that it can’t touch these fees (why I cannot understand as it seems to just be a respelling of administration). They won’t detail to me what is involved either.

In my lease it says ‘…unless there shall previously have been executed at the expense of the Tenant and delivered to the Management Company respectively for retention by it a Deed in duplicated expressed to be made between the Landlord of the first part the Tenant of the second part and the Management Company of the third part and the person or persons to whom it is proposed to assign sublet..’

Any tips on breaking through here and getting the £138 fee dropped to something sensible?

Many thanks

Adrian



Comments

Neil Patterson

9:51 AM, 9th August 2019
About 8 months ago

Hi Adrian,

An annual charge for permission to sublet your leasehold is unfortunately very common and £138 is about average from what I have seen from readers questions.

Adrian

9:54 AM, 9th August 2019
About 8 months ago

Reply to the comment left by Neil Patterson at 09/08/2019 - 09:51
Ah so, if it were for permission I would be ok, as I believe there is a limit to what can be charged. The bizarre thing seems to be that as long as they just want paying for notice and not for permission there doesn't seem to be a limit to what they can charge.

Possession Friend

23:03 PM, 9th August 2019
About 8 months ago

I'd Appeal it to FTT if I were you. Quoting ' Holding Management ltd v Norton et al 2012 UT.
and hope they see this as a change of wording scam to get around the UT's decision.
Hopefully if you can get the Tribunal to see that your F/H is basically taking the Pi#s out of their earlier judgement - you'll win. ?


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