Paying landlord’s licensing fees for consent to subletting

The Fridaysmove leasehold conveyancing team are receiving an increasing number of calls concerning payment of freeholders fees for granting consent to sublet their flat or apartment. This increase may be as a result of more first time landlords entering the market. It could also be that freeholders or management companies are seizing on an opportunity to generate cash.

A number of call we are receiving are on the back of owners receiving letters from  management companies on behalf of the landlords stating that they had become aware that the owner is sub-letting the flat and demanding licence fees in return for continued permission to rent it out. This could  cost as much as £135 plus £75 every time a new tenancy agreement is signed.

It is important that you read your lease. If it does not mention any restriction on letting, you cannot be charged for a licence. But if it clearly states it cannot be let without a licence, you may have some comeback against your conveyancing solicitor, as he or she should have pointed this out.

You may be able to challenge the charges through a leasehold valuation tribunal. For more information please contact the Leasehold conveyancing team at Fridaysmove