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Q: I want to sublet my flat. My lease does not say that I have to obtain the consent of the freeholder, but it does state that I need to notify the management company of the identity of the subtenants. It also says that I need to pay an administration fee of £50 plus VAT from time to time.
Is this “notification” the same as asking consent? The secretary of the management company insists that it is, and is asking for a copy of the tenancy agreement before giving consent. Also, is it reasonable for it to charge me the fee?
A: The general principle is that a leaseholder is allowed to do almost anything with his property, unless there is a specific restriction in the lease. If the lease does not specifically prohibit subletting or require you to get permission before granting a tenancy, you are absolutely free to do so. In your case, the lease simply says that you must “notify” the management company of the identity of the subtenants. It is highly unlikely a court would find that a requirement to notify was the same as needing the management company's permission before you sublet. This kind of obligation will not generally mean that you have to provide a copy of a tenancy agreement or give the management company any information other than the names of the tenants.
Most leases give much more power to the freeholder than in your case, because a landlord needs to control how his building is used. There are a lot of statutory safeguards preventing abuse. If a lease requires the freeholder's permission to underlet, Section 19(1) of the Landlord and Tenant Act 1927 says that it cannot refuse consent on unreasonable grounds. There are also procedures under the Landlord and Tenant Act 1988 that require freeholders to act within set periods of time after a leaseholder asks for consent. Also, the freeholder may not be the only one who needs to give consent. You should always check your mortgage to see whether you need the lender's permission to sub-let as well.
On the administration fee, a fixed sum of £50 plus VAT does not sound excessive. However, if the freeholder wanted a lot more, he probably could not get it. The Commonhold and Leasehold Reform Act 2002 treats this kind of fee as an “administration charge” and the freeholder can charge only a reasonable amount.
The writer is a barrister at Tanfield Chambers. E-mail your questions to: property.consumer@thetimes.co.uk
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