Property advise re leashold
Property advise re leashold
Author
Discussion

Prof Higgins

Original Poster:

11,706 posts

262 months

Thursday 4th August 2005
quotequote all
Have owned an investment property in London for a few years and last month found out that the freehold has been sold onto a new company. New freeholders via management company have now sent me a long winded letter which says that as the flat is let out I need to purchase a "licence to sublet" - this will cost me £95. Spoke to them on the phone and they made out it really wasn't down to them it was a requirement to hold one so that they could notify building insurance which is on a block policy blah blah. Now I can understand that insurance company may well need to be notified but never heard of licence being required surely a letter or call from me would do it?

Fairly sure it is bit of scam to make a bit of cash, they have after all bought the freehold for a reason!! Anyone have a knowledge on this, not a huge amount of money but are they testing the water to see if I just pay up without question and hence if I do more random demands will surely follow.


Any advice welcome.

Thanks

Sinclair

p.s Quick look at the original leasehold lease sees no reference to licences or even as far as I can see is there a requirement to notify freeholder if the flat is rented out - surely they are trying therefore to amend the contract already in place?

pdV6

16,442 posts

284 months

Thursday 4th August 2005
quotequote all
I'm sure the property lawyers will be along in a miute to advise, but AIUI the original lease will still be valid. If there's nothing mentioned about sub-letting in there then I can't see how they could demand any cash from you.

Watch out, though, they could legally start "improving" the building at your expense...

billsnemesis

817 posts

260 months

Thursday 4th August 2005
quotequote all
You only need a licence if there is a requirement in your lease to obtain one.

Very few residential leases outside central London contain any restriction on letting so you are probably right in your assumption that they are trying it on.

They cannot impose this on you unilaterally so fend them off unless they can point to a specific obligation to pay up

superlightr

12,920 posts

286 months

Monday 8th August 2005
quotequote all
if a lease has a prohibition about letting the flat is this enforeceable? fair? ie unfair contracts terms Act, remedies for breach of lease is only forefiture of the flat which is very drastic for a legal activity if we have good tenants.