Query regarding Registration of Dispositions and Charges

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    Query regarding Registration of Dispositions and Charges

    Hi - I am new to the forum and have found lots of useful information here but can't find an answer to the query I have at the moment. I bought a leasehold flat and parking space in March 2008. Each has its own lease (dated 31st March 2006). I was required by the freeholder to pay a total of £575.74 for the registration of disposition and charges. This comprised: for Notification of Assignment and Mortgage (£188 x 2) and Certificate of Compliance (£99.87 x2) - one charge for the flat and one for the parking space. My solicitor expected to receive a receipted notice and so queried this further and was told that "the registration fee refers ONLY to RECEIVING AND NOTING not for RECEIPTING AND RETURNING" - an additional fee of £188 (£94 x 2) was required for this service. I didn't pay that but I did with great reluctance pay the £575.74 as my solicitor insisted that there was no choice and that the freeholder could set the charge and I saw the list of charges so I am aware that the solicitor didn't add his own fees to this.

    Having seen the advice on this forum regarding excessive sub-letting fees and the right to challenge these as unreasonable variable administration charges, I would like to know if the charges I have paid fall into this same category and if there is anything I can do about this. I have checked the lease and there is the same wording in both leases, i e for the flat and the parking space. (The two leases by the way are in one title number at the Land Registry). A fee of not less than £25 per document is stated in the lease, which is considerably less than I had to pay. I wonder if I am able to take this retrospectively to an LVT.

    "REGISTRATION OF DISPOSITION AND CHARGES
    Upon every underletting assignment or transfer of the Property or the creation of any mortgage or charge thereon or upon the devolution of the Term howsoever arising within one month thereafter to give to the Lessor or its Solicitors a notice in writing with full particulars thereof and to produce to the Lessor certified copies of every document evidencing such disposition and to pay to the Lessor a reasonable fee (but not less than £25 together with VAT thereon) for the registration of every such notice and the Lessor covenants with the Lessee that upon receipt of such notice duly given as aforesaid and upon payment of all unpaid rent and Service Charge and Service Charge Adjustment it shall give the person lodging the same a certificate in accordance with the restriction contained in the Form RX1".

    Thank you very much for any advice on this matter.

    #2
    Sorry, my brain switched off a while ago but have you read this thread?

    http://www.landlordzone.co.uk/forums...include-an-AST

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      #3
      Mancmaz, is your managing agent also Estates and Management, or perhaps Simarc?
      To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

      Comment


        #4
        Thank you for your responses. The freeholder is Freehold Managers (Nominees) Ltd. The developer set up a Residents' Management Company, so the freeholder is only involved in these notices/registrations etc and unfortunately for us the buildings insurance. They tried to charge for consent to sub-let but are not authorised to do so.

        I did read the previous thread but was still unsure - it's clear that the notice was not required to be signed and returned as this was an extra fee which in the end the solicitor said I did not need to pay.

        Comment


          #5
          Ok, thinking about this, it appears to me that the receiving of notices and consequent issue of the certificates is really all one job. Note that there is a fee chargeable for registration but none for the issue of the certificate, and that they are obliged to issue the certificate once you lodge the notices (and the GR and SC is paid) whether or not you pay the extra fee they want for that. So I would say you have a pretty good chance of arguing that the fee is, at least in part, for the provision of a document (the certificate) and so would fall into paragraph 1(1)b of the schedule:

          http://www.legislation.gov.uk/ukpga/2002/15/schedule/11

          I'd certainly give it a shot, you will be pushing at an open door with the LVT on the jurisdiction issue.

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