Freeholder requesting 'license fee' for AST

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    Freeholder requesting 'license fee' for AST

    I own a leasehold flat which is renedt out on an AST and my freeholder is constantly finding new ways in which to nickle and dime us leaseholders for extra costs. The latest is a 'Subletting Licence' for which an annual rent of £48.00 is charged. The freeholder cites a clause in my lease relating to 'assignment charge underlease or any other devolution relating to the Premises to produce for registration with the Landlord's solicitor such deed or document and to pay the Landlord's Solicitor charges of Thirty pounds plus VAT for the registration of every such document'. I am pretty sure this would relate only if I was to sell the property and not in the case of assigning an AST?

    #2
    An AST would be an underlease.

    You'd need to quote the exact text, but from what you've written the charge would be a one off per AST rather than an annual licence and the money should be paid to the Landlord's Solicitor not the freeholder. And the charge is limited to £36.00

    The rest of the lease might vary the above, because they may allow variation to some terms and amounts, so the £30 plus VAT may have gone up.
    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).

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      #3
      Originally posted by jpkeates View Post
      And the charge is limited to £36.00
      I thought there was a judgement that such charges could be increased in line with inflation even if the lease did not provide for it.
      (sorry, no reference, just recalling, maybe imperfectly, replies to a thread in the last couple of years).

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        #4
        Could be - it would make sense.
        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


          #5
          Hi my lease is similar, would the fee be payable every time you get a new tenant? Does it have to be requested by the freeholder?

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            #6
            I think the registration of document applies if it affects the property title such as change of leaseholder's name after sale of leasehold flat . The AST agreement does not give the monthly rental tenant any rights to become the leaseholder under the lease and the responsibility for paying ground rent and service charge remains with the current leaseholder ( named at Land Registry records ) .

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              #7
              Not what you are asking, but if there are similar landlords in this block of flats and other resident lease holders who are being subjected to many nickle and dime charges that you mention might we worth getting together and forcing a buy out of the freehold especially if this is a long term investment. As I understand it you need 50% of the leaseholders to do this. This would depend also on how long your current leases are and if you want to extend them, if so it can become quite cost effective to buy out the freehold.

              Only my personal view so take advice before acting on anything I say.

              All the best Stew.

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