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  • Buy-to-Let

    Free holder introducing a charge

    I purchased two leasehold apartments in 2007 and have rented them out from day one.  They were bought on full disclosure that they were buy to lets with the then freeholder.  The mortgage secured on the properties is a buy to let mortgage.

    A few years ago the freehold was sold to another company.

    I've recently received a letter stating that if I sublet the property I must get permission.  They are trying to charge me a 'reduced fee' of £130 to get this permission from them.

    Are they legally allowed to do this?

    Any recommendations as to what is my best course of action?

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    Sandra Savage-Fisher

    unfortunately we had to pay a similar fee, basicaly for them to do nothing. Everyone wants a piece of you
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    someone more knowledgeable than me will come along shortly to explain why they can only charge either £35 or £45 to do this

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    Thank you someone has provided a link to give more detail to what you suggested.

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    Sandra Savage-Fisher

    Yes the fees are charged for all property on leasehold flats rented out.  40 flats in a block with half rented out £ 2500 just to give permissions to rent. Vultures !!!

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    Thank you this is very helpful.

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    Sandra Savage-Fisher

    I had a letter from E&M demanding £130 for registering a sublet recently, reduced to £95 if paid online.  I had previously seen a post on FB about paying £40 plus VAT which had been set at Tribunal as a fair amount for the paperwork involved. 

    My Lease stated that the fee should be 0.05% of the transaction value which for a 3 year tenancy was about £10; but there was also a a minimum stated in the Lease of £25 plus VAT so £30. 

    I sent E&M a letter refusing the £130 demand, stating the terms of the Lease and issuing a cheque for £30 as full and final settlement. 

    This cheque was accepted. 

    So why do they think they can get away with (fraudulently?) trying to extract £130 for registering every sublet? What about that pathetic pledge they all signed up to recently?

    Anyway... firstly check your Lease! And pay a max of £48.
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    Thank you.  Strangely it is E&M that are trying to charge me.  I will double check the lease but I'm certain there is no clause for a charge as I'd previously refused a purchase based on spurious charges that could be charged each and every time a tenancy was granted.

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    Sandra Savage-Fisher

    Yes, as J50 says, check your Lease.

    E&M cannot alter the terms of the Lease just because they do not like them and this includes introducing or raising costs.

    I have recently sent them a Notice of Transfer where the Lease quite clearly states that a charge of £5 & VAT can be charged and there is no provision for this to change.

    They have tried to charge us £295.00

    They have had to accept that there is a prescribed charge within the Lease for accepting Notice and registering the new owner.

    I argue this point with them at quite regular intervals.

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