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Tenant renewal charge from freeholder - legit?

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Hi. We own a flat in Oxford which is tenanted.

We have received a letter from the freeholder "Simarc Property Management" asking for payment to renew the subletting agreement with our tenant.

They want to charge us £90 for this.  Would have been £138 for a new tenant.

I seem to remember to dialogue on a Podcast that suggested that the freeholder does not have a legal right to request this anymore.

Can anyone else comment on this?  Have any of you challenged such a charge which seems to be for absolutely nothing at all.

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