Letter requesting a fee for Subletting leasehold flat

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Letter requesting a fee for Subletting leasehold flat

    Hi everyone,

    First post here so Hello,

    I wonder if anyone can help me. I have received a letter from my leasehold company stating that i have to pay a charge of £130 (or £95 if i fill it in online) to consent/register my tenant in the property i rent out. This is the first time they have ever wrote to me requesting this fee.

    The wording in the letter is as follows

    "According to our records, your lease requires that you obtain consent to sublet and or register a sublet with the landlord or manager"

    Then there is a section stating that they have already wrote to me requesting this and if i do not respond within 14 days we will hear of their solicitors. (This is the first letter i have had from them)

    They then include a "Sublet Guidelines" section stating the their "Clients consent is often required under the terms of the lease/transfer document, prior to commencement of any subletting, subject to certain conditions."

    I have an orignal document that looks like a brochure which i am assuming is like a copy of the lease.

    In there under Subletting it states:

    "If you wish to sub-let your flat, most leases state that you should obtain consent and that the sub-tenant should enter into a "direct deed of covenant' to ensure that the sub-tenant complies with the general terms and regulations contained within the lease. A standard appklication form can be sent to you.

    And regarding fees:

    You will be required to pay reasnable costs for the consent and/or for the preperation and completion of the deed of covenant together with an administration cost to us for dealing with the matter. These fees are set out within the application form.

    The first question i have is, do i have to pay the amount that they are asking for?

    As I have read online (in here) that "reasonable costs" can be £40 plus VAT. However with the wording of "Fees are set out in the application form" does that mean i have to pay the 95/130 that they are asking for?

    Also they want to know the entire history of the tenants that have resided in this property. Do you have to list these too? And will i get chareged for every single tenant.

    It just seems like yet another cost that i incur that the management agent is trying to get out of me.

    Thanks for looking and trying to help me




    #2
    What does your lease say about subletting and consent to sublet?
    That's where the answer lies.

    It is a matter of common sense for your tenancy agreement to mirror your lease obligations, but there's no need for a separate "deed" to achieve that.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Reproduce here what your lease says about assigning & subletting. Then we can tell you if you need to pay anything

      Comment


        #4
        Ignore it. They are just trying it on. Give them one fee and they will want it every six months for ever and since you bought flat.
        They need to refer you to a specific clause within your lease and that's not what you've quoted so I doubt there is one
        If you want to be 100% sure you will need to find the lease you were given when you bought and find the clause on subletting

        Comment


          #5
          Originally posted by JK0 View Post
          Reproduce here what your lease says about assigning & subletting. Then we can tell you if you need to pay anything
          Quite. Please be sure to let us have the exact wording and not a summary.

          Comment


            #6
            It's £40, plus inflation, plus VAT, although that is still less than £95. The £40 figure was probably reasonable at the time of the judgement, but needs to be converted to today's money.

            Comment


              #7
              Also, I don't think the service for which that fee was set included creating a deed to covenant directly, although that really should only need drafting once per development, and then fill in the blanks.

              I do think such deeds are desirable, and without one you should check that your tenancy agreement contains the same restrictions; in general, off the shelf agreements are not suitable for flats.

              Comment


                #8
                Hi. Thanks everyone for the reply’s.

                I am not sure that if this is my lease documentation but it is a kind of brochure which I had when I purchased the flat from the leasehold company. It says “Welcome to your new home” But this doesn’t really look like what I would expect a leasehold document to look like.

                In this it states the following about Subletting.

                Sub-letting your flat

                If you wish to sub-let your flat, most leases state that you should obtain consent and that the sun-tenant should enter into a ‘direct deed of covenant’ to ensure that the sub-tenant complies with the general terms and regulations contained within the lease. A standard application form can be sent to you.

                in order to protect the other residents in the building and to comply with the term of the lease, references may be required and the letting must be to a specific person or persons.

                You will be required to pay reasonable costs for the consent and/or for the preparation and completion of the ‘deed of covenant’ together with an administration cost to us for dealing with the matter. These fees are set out within the application form.

                Before you consider sub-letting, please make sure you check with your building society, bank or other lender to see if they have any rules that you have to follow.


                That’s what it says. But like I say I don’t know if this is the official lease hold document as it doesn’t really look like a legal document.

                What do you think?

                Comment


                  #9

                  Comment


                    #10
                    Please redact the property management company name from the image of the leaflet, which is not a lease.

                    The lease is the document a copy of which your solicitor gave, and should have been accompanied by a commentary on what it meant.

                    If you have lost it, and it you conveyancing happened not too long ago, you can buy a copy from the Land Registry, for a very low double figure sum (make sure you only use .gov.uk web sites).

                    It is essential that you have and have read your lease. The leaflet states things that are sometimes found in leases, but it does not tell you whether they are found in your lease. If you were intending to sub-let from the beginning, it was absolutely essential that you read the actual lease before buying, as it is possible for leases to make sub-letting impossible.

                    The worst case, other than a total ban on sub-letting, is that your actual lease sets out rules for calculating the fees that come to the same or more than you are being charged, in which case there is no escape.

                    Comment


                      #11
                      Hi I have found the lease now. What do you think?

                      let me know if you need anything else.

                      Really appreciate the help so far. Thanks.

                      Comment


                        #12
                        That lease looks like an expensive nightmare to comply with.

                        I'd just cooperate with the nonsense they ask for, and pay up, as it will work out cheaper.

                        Comment


                          #13
                          On the face of it that looks an onerous lease that means you would have to get any prospective tenant to agree to comply with all the terms of the lease - which presumably includes repairing covenants etc.
                          Personally I would still ignore it. Why do they think you are subletting ?
                          ​​​​​​​

                          Comment


                            #14
                            The wording requires you to notify every sub-tenant. I think it actually requires you to notify every agreement. The history is technically required to rectify your previous breaches by not notifying at the time. The statute of limitation on deeds is 12 years.

                            For the current sub-let, assuming there is no way the transaction value can be interpreted as more than £50k, seems to be £25 + VAT, plus the solicitor's fee for deed of covenant. Given the hourly rates for solicitors, I think the figures are probably in the right ballpark, even though the deed really ought to be a fill the blanks job.

                            I wondered if it was sloppy wording that the sub-tenant has to agree to all clauses, but the requirement on minimum rents makes me think it may have been intentional. I find it strange that small landlords are treated as consumers, but apparently they are, so the normal rule for businesses, that they understand what they are signing may not apply.

                            What I would have expected is basically that what I call the ASB covenants would be included, together with easements and limitations to the easements, but not financial and repairing covenants. ASB covenants are things like not having radios audible outside the flat between 11pm and 8am; not to obstruct communal areas; etc. There is more work in preparing a deed that limits its scope in that way, than one that applies to everything.

                            Such a deed for everything is probably necessary for older leases because some covenants are not transferred on a sale, but is only needed for assignment, not under-letting.

                            Comment


                              #15
                              Originally posted by Section20z View Post
                              Personally I would still ignore it.
                              What are your reasons for this advice?

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X