Q The owner of my block charges 1 per cent of the open market value whenever anyone sells or sublets a flat. It points to a right in the lease to recover transfer fees and sublet fees. The payments are in addition to a fixed Notice of Transfer or Sublet fee of £30 plus VAT. Are these charges legal?

A Residential leases do sometimes require the landlord's permission before someone sells or sublets. If the lease has such a clause, the landlord cannot refuse permission unreasonably. There is a detailed timetable for applying for consent to assign or sublet in the Landlord and Tenant Act 1988. A landlord who misses any of the strict time limits can end up paying substantial damages to the leaseholder.

The Notice of Transfer or Sublet fee of £30 plus VAT is for the landlord's legal and administrative costs. The owner can certainly charge these as a condition of giving permission. If your lease had not specified a figure, the fee would be treated as a variable “administration charge” under the Commonhold and Leasehold Reform Act 2002 - and the owner would be able to charge only a reasonable figure. Anything much over £300 for this kind of work would probably not be reasonable.

The big Transfer and Sublet fees are rather different. Apart from legal and administration costs, the landlord is severely limited in demanding money as a condition of giving permission to sell or sublet. The owner can demand cash only if the lease includes a specific clause allowing it to do so.

A demand for money as a condition of giving permission without such a clear provision is treated as a fine. Fines of this kind are not permitted under section 144 of the Law of Property Act 1925. However, in your case, since the owner has a specific right to 1 per cent of the market value set out in the lease, the Transfer and Sublet fees will not be treated as fines under the 1925 legislation.

There is still one avenue open to you. A rarely used procedure under paragraph 3 of Schedule 11 to the Commonhold and Leasehold Reform Act 2002 allows you to apply to vary a fixed fee in a lease. You may not win - but it may be worth applying to vary given the big fees that you and your neighbours face when you sell or sublet your flats.

The writer is a barrister at Tanfield Chambers. E-mail your questions to: brief.encounter@thetimes.co.uk

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