Freeholder charging for permission to sublet

[Jon66]

What is the position re a freeholder charging for permission to sublet? I am presuming it depends what is in the lease.

I received a letter several years ago stating the ground rent was to be paid to X company instead of Y. I cannot remember, but suspect I asked permission from the Y company upon purchase some years ago so does anyone know the position now?

And if charges are permitted under the lease, what has a tribunal held to be a reasonable amount?

[Anna1985]

I think there was a ruling - £60, unless you have a specific lease.

[Lawcruncher]

I am presuming it depends what is in the lease.

Your presumption is correct.

[Jon66]

Does anyone have a case reference as to what is held to be a reasonable amount?

[Gordon999]

If there is a figure for subletting stated inside the lease , that should be the amount to pay.

If there is no figure stated , then offer to pay £40 + VAT which is the figure determined in case below.
Holding & Management (Solitaire) Ltd v Cherry Lilian Norton [2012] UKUT 1 (LC); [2012] 7 E.G. 91 (C.S.)

[Jon66]

Gordon999 thank you, that's most helpful.

[Jon66]

So just an update. I checked my lease and it says the amount chargeable for permission to sublet shall not be less than £40. So I have written to the freeholder agent asking for their comments on the Holding & Management (Solitaire) Ltd case. They are asking for £95, and I shall probably pay it, but this freeholder agent is one of those that pushes everything and charges for everything, but they are very clever and pitch the cost just high enough to make a huge profit but not quite enough to make the leaseholders act. However we have learned to pick our battles and unfortunately it isn't worth the hassle for the small amount this time.

If anyone has any tips for dealing with this I'd be grateful. Not least because they'll probably come back saying that's what they charge . . ..

[Jon66]

Oh and just something I noticed. One of the directors of the company holding our freehold was a director of Holding & Management (Solitaire) Ltd. Hmm. this leaseholder/freeholder business gets murkier and murkier the more I look into it.

[Callan1]

Maybe you could consider Right to Manage (RTM) ?

[Jon66]

Yes have tried to get the other lh on board but . . .

[Gordon999]

( A ) You can conduct a search on (1) the freeholder company ( 2) the managing agent company ( 3) name of individual directors appointed as director on associate companies in the same group.

at Companies House website

at LEASE website ( www.lease-advice.org ) for previous cases decisions at LVT and FTT .

( B) You look for common details including ( i) registered address in London ? (ii ) controlling UK company or ultimate controlling company ( at overseas country ) given inside the annual accounts .

( C) Everyone is staying at home to avoid contacting Covid-19 and sat in front of their computer . So other leaseholders in your block could use their free time to help you to check who owns the freehold in E & W.

[Callan1]

Yes have tried to get the other lh on board but . . .

A potential 50% reduction in annual service charge bill is not for everyone I guess!

[Jon66]

Yes, it's very frustrating, but over half are subletting like me, but don't seem to care.

Gordon999 yes, I've started checking CH which is how I picked up that we have one of the same directors as the Holding and Management (Solitaire) case. I wonder how many companies which are holding our lh to ransome there are. I suspect there are probably less than a dozen bad ones like in the Solitaire case with a bit of a monopoly.

As you say, most of us have time on our hands. I'll keep digging 😁

[Gordon999]

I can save you some digging time. I suggest you search the website below and read the second paragraph on " Know your enemy :

https://cqra.org/journey-to-independence

[Jon66]

That's very interesting.