Lease silent on Administration Charges

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    Lease silent on Administration Charges

    I have owned a shop let under a commercial lease with a flat over sold on a long lease. The lease of the flat has provision for the leaseholder to pay a proportion of repairs to roof, structure etc. I have managed the property myself for 35 years but due to my age and increasing queries from the flat owner wish an agent to manage. The lease of the flat does not mention admin. charges. It does provide for a proportion of 'rates taxes assessments and outgoings whether parliamentary or otherwise' to be paid in proportion. Can the agent claim a reasonable admin charge from the flat owner for dealing with queries, issuing invoices for insurance a ground rent etc. There is no service charge.
    Many thanks

    #2
    Hi, in my experience I was advised that while we can appoint an agent, the leaseholder would have a defence of lease not allowing it and basically there would be anything to compel him to pay.

    The way forward in our case was an RTM process. In which case, the management agent fees would be payable by all leaseholders.

    If you have a good relationship you could amend the lease if everybody agrees

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      #3
      Originally posted by sumptners View Post
      The lease of the flat does not mention admin. charges. It does provide for a proportion of 'rates taxes assessments and outgoings whether parliamentary or otherwise' to be paid in proportion. Can the agent claim a reasonable admin charge from the flat owner for dealing with queries, issuing invoices for insurance a ground rent etc. There is no service charge.
      Many thanks
      "Admin charges" and 'managing agent fees' are not the same thing.

      Whether you can include managing agents fees as service charges will depend on the precise wording of the lease, but it might be possible if the wording in the lease allows for all of the costs of managing the building even if 'agents fees' are not specifically mentioned.

      It may be difficult to find a managing agent who is willing to take on a property that is just a single flat above a shop though, and the cost is likely to be relatively high for both the flat and the shop if you can find an agent.

      You say that there is no service charge, but if the leaseholders pay anything at all towards the costs of repairs, insurance or other management costs, that is a service charge.

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