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Phil Oakdon

Greedy Freeholder | Sublet Fees | Episode 228

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Hi all,

 

Really hope someone can provide some guidance here.

My greedy freeholder wants to charge me £130 for our sublet.

 

Fortunately, I listened to episode 228 the day after receiving the letter from them and was encouraged to hear Rob thoughts that this was outrageous and a fair price would be £40. 

 

I printed off the template provided and sent it off to the freeholder.

 

Last week, I got a response (attached).

 

Basically they're saying they're well within their rights to charge what they want and quote some other cases where similar decisions have been made.

 

Has anyone else been in this situation or do you have any advice on how I should proceed?

 

From what I can say I need to pay but would love to get some feedback as this is something I know little about.

 

Thanks so much in advance

 

Phil

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Hi Phil,

 

Just found your thread as I am going through exactly the same thing since e&m took over our block. Same fee as well!

 

I have looked at the template and am reluctant to use it considering the response they gave you and quite frankly I do not have a barrister lined up as the letter suggests :)

 

I have a call with https://www.lease-advice.org/ tomorrow and will see what they say. Just wanted to find out what you did in the end???

 

Looking forward to hearing from you.

 

Kind regards

Alex

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Hey Paul,

So in the end, I got in contact with the solicitor who helped us with the purchase originally, we had a look through our lease agreement and low and behold there was a clause that stated that they could charge us no more than the reasonable sum of £40 plus VAT. From there it was simple, emailed it over to them and they agreed to lower the fee to that and that was that.

Lesson learnt though, make sure there is a clause in your lease agreement for this before purchasing a property, I got lucky, but it could have been pretty expensive otherwise.

Best of luck, let me know if you need anything!

Alex

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Estates and Management are notorious for high admin fees. Always check the wording in the lease before paying any fee they ask for.  They also try and charge  their standard high notice of transfer fees when the lease provides for a percentage of the transfer price which is usually a lot lower than their standard fee. 

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Hi 

I too have had multiple letters from Estates & Management about sublet fees.  I wrote to them explaining I see this in a similar light as the "doubling ground rent" scenario which has resulted in many properties unable to get a mortgage, and so are not easily sellable, except to cash buyers.   They wrote back saying it is in the lease - which is may well be  - but that does not make this dubious practice acceptable, in my view.

Has anyone got a update on this?  Anyone not paid E&M?  Or paid just for peace of mind?  I'd be keen to hear or speak with anyone.

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Hi all,

Read your leases.

I have had similair situations with Freeholders and their agents over additional charges such as subletting fees and other imposed restrictions.

As a leaseholder you only need pay the fees and charges set out within your lease.

I've never paid E&M charges when I didnt have to. 

Peace of mind? My leases give me peace of mind, as they are the agreements I'm working off.

Conrad


Conrad Paton

+44 7957 959851

conradpaton@yahoo.co.uk

https://www.linkedin.com/in/conrad-paton-424446110

 

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If the lease provides a fixed fee for something, that is what you should pay. It's more difficult if it says "reasonable" rather than a set figure. If the lease doesn't say a fee is payable, argue it by quoting the lease wording. 

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