Freeholder persists to claim registration charge to underlet despite LVT decision.

[gilbertcat]

Following an application to the LVT to define reasonable fees in respect of permission to underlet, Estates & Management representing Gradeband, the freeholder,acknowledge the LVT decision about the variable administration charge and that they pay my application costs, but still try to charge me a registration fee with each new tenancy agreement. The LVT stated that the registration fee demanded is not a variable administration charge as defined in the Act but nevertheless stated that their interpretation of the lease is that I am not liable for such a charge.
My question is what legal right can they have when my interpretation of the lease is backed in no uncertain terms by the LVT?

I have written to them rejecting the claim and demanding a cheque for the £50 costs.

[Gordon999]

Both companies which you mention are members of Consensus Business Group controlled by Vincent Tchenguiz. You can view the company structure at www.cqra.org and find them under Cos.no. 175 for E&M and 191 for Gradeband :

http://www.cqra.org/index.php/lvt/11...h-2011#Company Listing


Please post (1) the LVT case reference number or weblink and (2) what are E&M are required to re-pay you on LVT application costs ( 3) what are E&M now demanding.

[leaseholdanswers]

I think events have rather overtaken that statement.....

If the LVT ruled that the registration fee is not one over which they have control, that rather suggests that there is a fee due.

As requested if you can quote the clause in the lease that they rely on we can comment.

Otherwise you would have to apply to the county court, or wait for them to sue for it/them and challenge it then.

[JK0]

Presumably if Gilbertcat just keeps paying his ground rent, and E&M keep accepting it, haven't they waived any 'breach' of which they are aware, Leaseholdanswers?

[leaseholdanswers]

There is no breach in not paying a fee; the concern is that when they come to sell the purchaser will have their notice rejected creating a headache for all concerned.

[hansa]

Otherwise you would have to apply to the county court, or wait for them to sue for it/them and challenge it then.

Hi Leaseholdanswers, out of interest, what type of claim would the leaseholder make to the County Court?

[gilbertcat]

Thank you for your comments.

Regarding charges for registering underlettings, the LVT wrote:


For what it is worth... whilst we consider that the Applicant must give notice of underlettings, we agree that no registration fee is payable. The Respondent argued that the registration of underlettings is required by paragrapgh 27.1 of the Eighth Schedule to the lease, which provides: -

“To give written notice within 28 days to the lessor and to the Management Company (or their agents) of any assignment transfer mortgage charge grant of probate letters of administration order of court or other matter disposing of or affecting the Demised Premises or devolution of or transfer of title to the same … and also pay … such reasonable fee appropriate at the time of registration in respect of any such dealing …”

However, the absence of any mention of underlettings from the list set out above is striking, and leads us to conclude that its omission must have been deliberate. The logic behind the exclusion of underlettings from this notification requirement is not difficult to discern: it is because notification/registration of lettings is covered by a different provision in the Lease … which makes no provision for the payment of a registration fee (and where the right to charge such a fee cannot be implied).
My question remains - what course is open to E&M or me to resolve this ,matter. E&M are ordered by the LVT to pay our costs of £50 within 14 days. Not yet received! Due by 24th March.

[JK0]

Don't hold your breath for your £50!

I asked for suggestions to help you on TTAS:

http://www.thetruthaboutsolitaire.co...#comment-71686

I was told that E&M are desperate for cash to keep running. (They also asked me for £75 for registration a few weeks ago, after the LVT and Lands Chamber both confirmed that my lease does not call for it.)

I suppose if you really want to escalate this, you can issue a County Court Claim for the £50. Then if they still don't pay you, perhaps apply for them to be wound up!

[leaseholdanswers]

or other matter disposing of or affecting the Demised Premises

Is fairly clear, an underletting of the whole certainly affects the premises. I can't for the life o me see how te Chair arrived at that conclusion, they certainly would get an argument from me if acting for a landlord.

if they concluded that a notice is due under this clause it follows that a fee is due.

But that's the risk when landlord's turn up with boiler plate arguments.

Give notice and offer a fee. if they decline to accept the notice that is their commercial decision you have complied with the lease by notifying and offering payment of a fee. You are hardly in breach...!

Let them sue for £40. I think the court will have a lot to say about that.