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Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7663
Experience:  UK solicitor holding an England and Wales practising Certificate.
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Under the terms of the lease residential flat which I

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Under the terms of the lease for a residential flat which I have purchased and now wish to let on an Assured Shorthold Tenancy to an unrelated third party the Freeholder advises me that first of all I need prior consent from them to do this for which a fee is payable and that further fees will be payable each and every time I relet. Am I legally bound to pay these fees.
Mr TW Bell.
Hi, Thanks for your question. What does your lease say about sub-letting and fees please?Kind regards,Tom
Customer: replied 2 years ago.
Under the heading "Conditions of Alienation" the lease states "not to offer to assign underlet or otherwise part with possession of the property without first notifying in writing the Management Company and paying to it a transfer fee of 0.075 percent of the gross sale price or open market value of the property whichever sum shall be greater sum by way of administration.
In practice the Freeholder is demanding a sum of £100.00 plus VAT [£120.00] to cover the administration of the notice and granting of consent. They further state that this sum is required "upon every underletting when entering into a new Tenancy Agreement"
***** *****
Thank you for your question and patience, I’m Tom and I’ll try to help you.
Yes, you will probably have to pay the fee that they are asking for.
Most freeholders charge similar fees and you will generally find that landlord’s require incoming tenants to cover these fees prior to actually executing the tenancy agreement.
If no tenant is willing to take the property by paying the fee as well (unlikely unless your locality is a tenant’s market) then I would suggest that you pay it and then all the tenants to remain in situ at the end of their tenancy by continuing on a statutory periodic tenancy, rather than by executing a renewal tenancy and having to pay the fee again.
My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.
Kind regards,
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