Retrospective letting consent - lawful request ?

[Ian Hill]

I bought a flat new from Barratts in 2002 as a buy-to let. It has been let continuously since new through a local Letting Agent. Barratts sold the freehold to Freehold Managers plc in 2005, and last year I received a letter demanding £260 one-off fee, plus £193 per year for letting consent. I replied advising that my letting arrangement was from "day-one", was fully known about by the previous freeholders, and that they must have known about these arrangements as part of their purchase. I have just received another letter with the same demand 12 months on. It surely goes against all natural justice (!) for such retrospective demands ? I fully accept the requirement to seek freeholders permission had I bought into their ownership, but not after so many years. Can any one please illuminate the legal position ? Thanks,
Ian Hill

[Lawcruncher]

We need to know what the lease says.

[JK0]

Have a look at my posts #421 & #424 here:

http://www.landlordzone.co.uk/forums...ld-flat/page43

[Ian Hill]

Thank-you for your reply and my apologies for delay in replying but have been away. Have checked the lease and it states "Not to underlet the Property as a whole other than on an assured shorthold tenancy for a fixed term not exceeding one year in duration." Is this the relevant section ? If so, it appears to accept that letting is normal outcome of ownership. All the SHT's have been for 6 month periods and arranged through a well-known local agent of good repute.

[property mongrel]

I am not an expert on contract law, but I would want to know:

1. In the freehold originally owned by Barrats was there any mention of a payment such as being asked for now, even if Barratt never collected it?

2. Did you pay last year?

If there was a charge that was never collected might that make the current demands legitimate?

If you had paid last year, or did pay, I would like to know if that might that be seen as acceptance of the condition?

pm

[mariner]

I thought the original freeholder (Barrats) had a duty to offer LH opportunity to buy out the Leasehold before selling on to 3rd Party?
Did the OP decline this offer if made?

[quarterday]

Its not usually a case of declining the offer, more a case of not getting eveyone organised and under starters' orders to serve a valid purchase notice (with sufficient partipants). None of this exonerates excessive licence to underlet fees.

Go at it like a dog with a bone; dont be ripped off.

Tell the freeholders that without prejudice to your contention that the freeholders predecessors have waived the right to licence to underlet fees; if a fee is to be payable you dispute the amount and want the LVT to determine what it should be (Probably £75 absolutely tops)

I have no doubt that Barratt Developments would have complied with the letter of the law regarding the sale of their freehold reversions.

[Lawcruncher]

Thank-you for your reply and my apologies for delay in replying but have been away. Have checked the lease and it states "Not to underlet the Property as a whole other than on an assured shorthold tenancy for a fixed term not exceeding one year in duration." Is this the relevant section ? If so, it appears to accept that letting is normal outcome of ownership. All the SHT's have been for 6 month periods and arranged through a well-known local agent of good repute.

Your interpretation is correct. No consent is needed for ASTs of a year or less. Point the clause out to the managers.

[Ian Hill]

Retrospective letting consent

I am not an expert on contract law, but I n would want to know:

1. In the freehold originally owned by Barrats was there any mention of a payment such as being asked for now, even if Barratt never collected it?

2. Did you pay last year?

If there was a charge that was never collected might that make the current demands legitimate?

If you had paid last year, or did pay, I would like to know if that might that be seen as acceptance of the condition?

pm

I have read through the Barratt contract and can find no mention of such requirements or charges. They never asked for payment, and I did not pay Freehold Managers last year when they made their demand. Seems strange that they never followed up my non-payment, plus explanatory letter ? Or perhaps not.....
Ian

[Ian Hill]

Barratts offered the Freehold to all nine owners before the deal with Freehold Managers was done - I did my best to encourage the other eight to buy it out, but no-one else was interested, or could afford it.
Ian

[Ian Hill]

Your interpretation is correct. No consent is needed for ASTs of a year or less. Point the clause out to the managers.

Thank-you - reply received and understood. There seems enough information on this post for me to make a worthwhile response to FM should they pursue this underhand demand,
Ian

[Ian Hill]

Thanks quarterday, Lots of information for me to work with,
Best wishes,
Ian