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Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7602
Experience:  BA (Hons), PgDip, Practising Solicitor
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Hello, I have received an invoice from my freeholder for £120

Resolved Question:

Hello, I have received an invoice from my freeholder for £120 for the registration fee after renting out my property and would be grateful for some advice as the lease is unclear to me. It says '...And to pay or cause to be paid at the same time to the lessor's solicitors a fee representing 0.05% of the monetary consideration expressed in the document of which such notice is affecting the demised premises PROVIDED THAT in the case of a notice of mortgage or charge given silmutaneously with a notice of assignment transfer or underlease the Lessor will register the notice of mortgage or charge without payment of any fee. ' The rent is £415 per month and it is a 6 month tenancy. Do I have to pay the fee and suffer further charges each time there is a new tenancy or when one is renewed, or do I pay the 0.05%? The freehold company is Simarc. Thanks, Hannah
Submitted: 5 years ago.
Category: UK Property Law
Expert:  Thomas replied 5 years ago.
Thanks for your question.
To enable me to answer your question could you please respond to the following:-
1. Could you give me the working of the clause in the lease in which you covenant to give notice and specifically what dispositions/transactions you are bound to give notice for plesae
Kind regards.
Customer: replied 5 years ago.

Hi as below -

'Within one month after the date of any and every assignment transfer mortgage charge underlease or tenancy agreement (including any immediate or derivative underlease or tenancy agreement) of the whole or part of the demised premises for any term assignment of such underlease or grant of probate or letters of administration Order of Court or other matter disposing of or affecting the demised premises or devolution of transfer of title to the same to give or procure or be given to the solicitors for the Lessor notice in writing of such a disposition or devolution of transfer of title with full particulars thereof and in the case of underlease (and if required by the Lessor) a copy thereof for registration and retention by it And at the same time to produce or cause to be produced to them the document affecting or (as the case may be) evidencing such disposition or other matter ...' then it finishes with the sentences I gave you.

Expert:  Thomas replied 5 years ago.

Thanks for your reply. .
I think you’re going to have to pay the fee unfortunately. The wording of the clause is more comprehensive that I had hope and plainly does include a tenancy agreement as a disposition for which registration is required.
The clause is a bit prohibitive, but you do find these types on some tenancy agreements granted by professional freeholders. Ultimately your solicitor should have drawn your attention to this clause (and others) when you bought the property and then it would be for you to decide whether or not to proceed.

As you have bought the property it would be a breach of contract if you did not pay the money.
I would say that the next time you rent the property you make it a condition of the tenancy that the incoming tenants shall pay the fees of the freehold company.
If you are minded to avoid such fees in future agreements then I would suggest granting a longer tenancy but with appropriate break clause in favour of both you and the tenant to ensure only one fee is paid.
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Kind regards,

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