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There is great speculation
surrounding the future of fees charged by Freeholders and or Managing Agents
on the subletting of leasehold property.
This follows news that the Law
Commission is going to examine the right to charge such fees as well as
leasehold exit fees charged when selling or renting out a retirement flat.
According to the Leasehold
Knowledge Partnership speculation is rife that such fees will be outlawed for
good.
The Partnership reports on its
website:
‘This means anyone selling or
renting out a retirement or non-retirement flat should keep all documentation
with a view to making a claim in two and half years time’.
It adds:
‘LKP is deluged with inquiries
about subletting fees, often where freeholders and their managing agents are
plucking figures from the air for a sublet consent.
The tribunals have dealt with
countless cases, but there is no binding decision on what would be a fair
sublet consent (most freeholders have to give consent to a sublet, usually
followed by the word “such consent not to be unreasonably withheld”.
The retirement sector is
further complicated because some sublet fees are contributions to the
contingency fund and some are set at one per cent of market price.
One family at Gibson Court, in
Hinchley Wood, Surrey had to pay a sublet fee of £2,500 into the contingency
fund last January.
McCarthy and Stone this month
dropped the one per cent contingency charge at all sites where it is the
freeholder in favour of an £80 plus VAT fee’
MJP Conveyancing are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk
