Is there a limit to what constitutes a premium?

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    #31
    Hi - Nomadiclord, could I cheekily ask if you have moved forward with your freeholder as I find myself in an identical position (right down to the second child who didn’t come with an additional bedroom !!). Our freeholder is also requesting a premium to cut into the external walls and my own attempts to dispute this with his solicitor have come to an abrupt end with her adamant that he is entitled to one ….

    (Any pearls of wisdom from anyone would be so much appreciated ….. !)

    Thanks in advance

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      #32
      Annoyingfreeholder,

      Since every lease is different, u need to check what ur lease says around performing alterations/additions to ur demise. If I use my lease as an example, mine says that I can add/alter my demise (including maiming/injuring the external wall) provided that I get consent from the FH. As part of obtaining consent for my loft conversion, no premium was payable.

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        #33
        Hi Annoyingfreeholder.

        No not yet, I am currently getting an interpretation of a section 84 application. If you can post the lease section here, I can give my personal opinion on whether it is an absolute or qualified covenant.

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          #34
          Thanks so much for responding (and apologies, I’ve only just seem it). I’ve taken clauses 9 & 10 to be the relevant ones …

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            #35
            Annoyingfreeholder good news for u. U have a qualified covenant (not absolute). This means that ur FH cannot unreasonably withhold consent. Now to check if a premium is payable or not to the FH, u need to check the extend of ur demise. Eg if ur demise includes internal and external walls and provided that the scope of the alterations are within ur demise, then no premium is payable to the FH.

            To help assess this take a pic of the section describing what had been demised to u.

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