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We are a letting agent. We manage a property that is lease

Resolved Question:

We are a letting agent.

We manage a property that is lease hold.

The owner of the lease charges the landlord £100 for authority to let the property.

They will also charge thisfee (and may increase) at each tenant change.

Is this lawful?
Submitted: 2 years ago.
Category: UK Law
Expert:  Thomas replied 2 years ago.
Hi,

I'm a little confused. I presume you act for the landlord. You refer to the "owner of the lease" charging this money, who are you referring to in this regard? The owner of the freehold?

Tom
Customer: replied 2 years ago.
We are a letting agent working for the landlord. Correct the owner of the free hold is charging a fee.
Expert:  Thomas replied 2 years ago.
Hi

Thanks for your reply.

Whether or not the freeholder is permitted to charge a fee depends upon what the Lease that your client owns says. There will likely be a clause in it which states that either he is not permitted to sub-let without their consent (which would be subject to the fee) or that he may sub-let but on each occasion is obligated to pay a fee to the landlord to confirm the same.

The clause may specify the amount the freeholder should charge for this and whether it is permitted to increase. Alternatively it may say that they are permitted to charge a reasonable fee. In the event that a reasonable fee is charged I would suggest that the amount should be about £50, rather than the full £100.00.

If your client does not comply with the clause in the lease then they would be in breach of the lease, which is a breach of contract for which the freeholder would be entitled to sue him on.

If there is no such clause then the freeholder cannot charge a fee at all.

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Kind regards,


Tom
Thomas, Lawyer
Category: UK Law
Satisfied Customers: 6660
Experience: BA (Hons), PgDip, Practising Solicitor
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