How much can the freeholder charge for registering details of a sublet?

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    How much can the freeholder charge for registering details of a sublet?

    I am a director of a Freehold Company of a small block of 28 flats in a popular residential area.

    Over the past few years the majority of flats have been purchased by investors who sublet the flats on ASTs.

    Although the leases between the Freehold Company and the lessees are quite clear that on a change of tenant the lessee must advise the Freehold Company of who the flat has been sublet too this has not been happening for many years.

    Our task for 2022 is for our new and efficient Managing Agent to compile a register of each flat to be annotated on whether they they are sublet or not.

    The original leases from 1987 say that on each sublet a fee of £10 is payable as a registration charge. In view of the time which has elapsed would we be entitled to charge a fee of say £100?

    Whilst we have no issue whatsoever with the tenants themselves the majority of issues which we have in the building come from the flats which are tenanted out either from a failure to dispose of rubbish correctly despite there being numerous signs of what to do, prams and other items being left in corridors, scuffs on the walls from when they move in and out. Unfortunately the building gets no “upside” from when flats are rented out but plenty of “downside”…

    Any other comments on how the building can be compensated for the additional wear and tear, and work, which the subletting results in would be greatly appreciated.

    If the lease states that you may charge a registration fee of £10, that is the amount you may charge, you are not entitled to increase the charge unless the lease specifically allows an increase. Even then you would be limited to a reasonable amount and £100 would be considered to be unreasonable.

    The lease should be specific regarding repairs and maintenance costs and how they are to be allocated to leaseholders. It follows that if the authorised costs increase, the charges to leaseholders will increase.

    In short, you should comply with the lease,.


      As eagle2 says. You can't make stuff up.


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