Consent to let fees: can someone read 2 clauses in my lease and advise?

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    Consent to let fees: can someone read 2 clauses in my lease and advise?

    Hello,

    Have read the many threads already on here which seem to depend on specific wording on the lease.

    Freeholder is expecting £200+vat for each tenancy every 12 months for the following 2 clauses (£100+vat per clause) 25.2 and 27:

    I've said I'll pay a fee of £40 plus VAT for their time, but no more until I've received advice. I will of course contact the LVT, but appreciate any thoughts in the mean time about whether these charges seem fair:

    Please see attachment.

    Thanks so much for any thoughts!
    Attached Files

    #2
    Freeholder is expecting £200+vat for each tenancy every 12 months for the following 2 clauses (£100+vat per clause) 25.2 and 27:

    My apologies, it's £200 plus VAT this year then 110 plus VAT in subsequent years...

    Comment


      #3
      its actually

      £100 plus VAT for consent, and it is each for every letting as you are precluded from allowing then to simply hold over, and £100 plus VAT for Notice.

      The latter is not restricted under the law and while the former is £100 + VAT is not excessive.

      I am not keen on the wording of 25.2 I dont think its drafting reflects the intent but thats neither here or there.
      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


        #4
        Originally posted by leaseholdanswers View Post
        its actually

        £100 plus VAT for consent, and it is each for every letting as you are precluded from allowing then to simply hold over, and £100 plus VAT for Notice.

        The latter is not restricted under the law and while the former is £100 + VAT is not excessive.

        I am not keen on the wording of 25.2 I dont think its drafting reflects the intent but thats neither here or there.

        Thank you so much for your response. Can I ask you to simplify for me - sorry! In your opinion, do you think the charges are reasonable? I have spoken with the leasehold advisory service who have advised if we cannot amicably meet at an amount in the region of £40 plus VAT, I can take it to tribunal.

        Do you mean the second clause is not enforceable? As in they cannot charge for that?

        Really appreciate any thoughts/opinions...

        Comment


          #5

          Originally posted by sbmcb View Post
          Thank you so much for your response. Can I ask you to simplify for me - sorry! In your opinion, do you think the charges are reasonable? I have spoken with the leasehold advisory service who have advised if we cannot amicably meet at an amount in the region of £40 plus VAT, I can take it to tribunal.

          Do you mean the second clause is not enforceable? As in they cannot charge for that?

          Really appreciate any thoughts/opinions...
          Oh dear..... I have answered the question.

          A notice fee, #27, is not subject to determination or required to be fair or reasonable, while a consent fee# 25.2 is. On the basis of future costs being £110 it is fair to infer that the £200 is for both and roughly £100 per. That means that the notice element is not restricted, while consent is and at £100, as posted is not excessive.

          If you seek determination it is likely that this is the answer that you will get. £40 is figure that flats around but was only an indication of what a notice fee should be, and qualified by the LVT(FTT) that they have no jurisdiction on that. ( So dont reply " but I have read that its £40"... you now know that its not)

          Consent fee, which would be in addition to a mythical £40 depends very much on what work they can show is needed to be done which depends on lease working

          Given the other clauses in the lease which relate to the permitted letting, £100 is quite justifiable.
          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


            #6
            Ok. Thanks for your response. The free holding agents have since replied:

            We do feel that with the more recent rulings by the tribunal we believe that the fees charged are fair and reasonable, however, as a matter of commercial expediency we will accept the £40 plus VAT for granting the required Consent, please complete the attached Sublet Application as to date I cannot see we have received this?

            In respect of the Notice the wording for Clause 27 reads: To give written notice within 21 days to the lessor (or its agents) of any assignment, transfer, mortgage, charge, grant of probate, letter of administration, order of court or other matter disposing or affecting the demised premises

            You would agree Subletting of the property does affect the demised premises (how can it not?) and as such under the terms of the Lease we would require to be served a Notice with a fee payable, which the Lease specifies to be reasonable plus VAT we can confirm our reasonable registration fee in this regard is £50 plus VAT.

            Comment


              #7
              Well good they negotiated thats good news. As I anticipated the fee is in fact two fees one for the other. If they are charging £40 for the consent, then under #26 cost of that would be £75 at the very least. £40 is a bargain. Just be sure that you do as 26 says.
              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


                #8
                Since the agents have suggested £40 plus VAT for consent I would snatch their hand off and agree. £50 plus VAT is perhaps a bit expensive for the registration fee, but together £90 plus VAT for both consent and registration is not worth arguing about.

                Clauses 25.2 and 25.3 are not very well drafted. First they do not sit together very easily as in law "underlet" and "grant an underlease" are the same thing. It is not difficult to guess the intention (to set out different requirements for short and long term underlettings) but the drafting fails to achieve the intention. Taken on its own clause 25.2 is not at all well thought out. It fails to take account of practicalities and the fact that when an AST comes to an end that a periodic tenancy will arise if the tenant remains in occupation.

                Comment


                  #9
                  Hugely appreciate both responses thank you. Can either of you put into layman's terms exactly what clauses 25-27 mean? Really appreciate your time if you could spare a minute or two-what exactly do I have to do/not do in order to comply with the lease? I know I should probably seek legal advice to be 100% sure...

                  Comment


                    #10
                    Well no we ought not as we have both mentioned the wording is not exactly clear, so any “translation” would involve “well it could mean that and it could mean this”. The only way to be definitive is have it determined at the FTT, the cost and time of which is far in excess of what’s at stake.

                    You do have to pay a notice fee of £50 regardless as the FTT have no jurisdiction,, and therefore you are only looking at £40, and there is no commercial basis to risk the costs and time of you or the landlord going to the FTT for determination.

                    So taking a pragmatic approach and putting to one side any technical arguments on drafting for the sake of £40 plus VAT

                    1 You do have to serve notice and pay a fee saying the property was let on x to Y

                    2 its prudent to pay the £40 re the consent to let on a permitted letting on an AST( ignore the other agreement bit as you should use an AST) of not more than 12 months.

                    3 Note that the lease requires that you should
                    -not allow the tenant to hold over after the term and seek possession, or
                    grant a new tenancy of not more than 12 months to the existing tenant

                    4 Clause 26 is open to argument however as they have not raised this, it is prudent to ensure that the terms of the lease on restrictions and rights are mirrored in the AST, e.g. noise and nuisance clauses, not to use the common drying areas on Sunday or keep chickens, what parking spaces to use etc , not to beat the Porter staff if there is anyone looking etc, are identical, and not rely on the standard wording in a bog standard AST.

                    Once you have amended the AST, apply for consent to let before or while finding a tenant, obtain consent, and serve notice.
                    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

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