Sub-letting charges by freeholder's agents

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    Sub-letting charges by freeholder's agents

    Hi
    We are new landlords and are not sure if our freeholder can charge us for sub-letting a flat.e Our lease says that "....if we desire to transfer assign or underlet the Property or this Lease (except in the case of an underletting for a period not exceeding three years)............to pay reasonable fees to the Lessor....."
    Does this mean we can sublet for periods less than 3 years without incurring any charges or have I mis-understood?

    . We have been told that we have to pay £120.00 and then £70.00 every 6 months and then if we get a different tenant we have to start again with £120.00 and then £70.00 until tenant changes again.
    Please can someone help me on this before we go any further

    Many thanks
    Doris3668

    #2
    Is there a written demand from the freeholder company or a managing agent or solicitor ? What is the precise wording in your lease requiring the Lessee to pay a fee to lessor for what ? consent ? registration ?

    There is no legal basis for paying 70 pds every 6 months - this is a try on

    You should ask your own conveyancing solicitor to explain the meaning in your lease "except in the case of an underletting for less than 3 years".

    Comment


      #3
      Originally posted by Doris3668 View Post
      Hi
      We are new landlords and are not sure if our freeholder can charge us for sub-letting a flat.e Our lease says that "....if we desire to transfer assign or underlet the Property or this Lease (except in the case of an underletting for a period not exceeding three years)............to pay reasonable fees to the Lessor....."
      Does this mean we can sublet for periods less than 3 years without incurring any charges or have I mis-understood?
      Well to be certain we'd need to see the covenant in full but it does look like it's only if you create a sub-tenancy that is expected to last for more than 3 years that you have to pay any fee.
      I accept no legal responsibility for comments/advice I make on this forum. Please check with a solicitor before acting on statements made in a public forum.

      Comment


        #4
        Originally posted by Doris3668 View Post
        Hi

        Our lease says that "....if we desire to transfer assign or underlet the Property or this Lease (except in the case of an underletting for a period not exceeding three years)............to pay reasonable fees to the Lessor....."

        . We have been told that we have to pay £120.00 and then £70.00 every 6 months and then if we get a different tenant we have to start again with £120.00 and then £70.00 until tenant changes again.
        Please can someone help me on this before we go any further

        Many thanks
        Doris3668
        We dont know what comes after The lessor, but given the fee rates I suspect that this is for consent, and comes into play if the letting is more than three years.

        You therefore have to look at the rest of the wording AND later in the lease to say if notice has to be given of the let, of any length.

        So please let us know what he lease says in full and happy to draft a response.
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment


          #5
          Those are the same fee levels charged by the freeholder's agent (a large company) for "notice of registration" on one of my properties and discussed on this forum before - so it might not be for consent.

          In terms of my situation, following advice on here from LHA and others, I paid the initial £120 and then refused the subsequent £70 fee on the grounds that the same agreement remains in place (albeit as an SPT) and the agent has not chased up subsequently.

          Obviously, depending on the content of this particular lease, that might have no relevance.

          John

          Comment

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