How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Thomas Your Own Question
Thomas, Lawyer
Category: UK Law
Satisfied Customers: 7602
Experience:  BA (Hons), PgDip, Practising Solicitor
Type Your UK Law Question Here...
Thomas is online now
A new question is answered every 9 seconds

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

This answer was rated:

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?

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?

Customer: replied 4 years ago.
We are a letting agent working for the landlord. Correct the owner of the free hold is charging a fee.

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.

Please remember to RATE my answer OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE or above if you are satisfied that you have received the correct legal advice (even if it is not the answer you wanted to hear), otherwise I do not receive any credit for answering your question.

If you are not willing to rate my answer as OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE then allow me to assist further by replying asking what clarification you require rather than rating my answer at levels below.

If you wish for me to provide you with further guidance on any question you may have in the future then please submit a further question to the board requesting me either by my profile or by marking your question. “FAO Tom”.

Kind regards,

Thomas and other UK Law Specialists are ready to help you