UK Landlord Forum / Life

Hi,

I'm looking for some advice regarding a letter I received from the management company for two properties of mine that provide Buildings Insurance and Ground Rent.

I've attached the letter and hope someone can give me some advice on what they would do. In short, they first request my address as their records don't match up to what they have on file--despite me having sent that information two years ago and have the email thread and reply to prove they received my information.

Secondly they then request me to send the AST for current tenants and a £120 admin fee (for each property) to file for a Formal Registered Subletting Document' so that they may 'inform the insurer of any subletting activity to save any possible invalidation of the policy.' It also seems that they will require a new request for a Formal Document on each new tenancy.

I've been the landlord to both of these properties for almost four years and have never received any request like this before and wanted to know if any other landlords had ever got anything like this?

I'm also just confused as being the landlord I'm not 'subletting' the property out to tenants so I'm not sure what they're getting at. Or am I missing something here?

It would be great to hear from others on any advice or help before I get back to the management company and find out what they're trying to charge me for!

THanks!

Always be wary of advice from a forum and always do your own research.

Firstly to address your question.
You are the Landlord but you are not the Freeholder of the flat (I assume this is a flat/apartment).
Legally you are the leaseholder (albeit a long term lease) and therefore legally you are actually sub-leasing the property.

What your Managing Agent (MA) is trying on is to use the Landlord and Tenant Act 1927 s19(1)(a) such that there is a "right of the landlord to require payment of a reasonable sum in respect of any legal or other expenses incurred in connection with such licence or consent".
To my mind this is another example of the ambulance chasing mentality of institutions to find "old law" to claw back money from a mark but that is my opinion and perhaps the costs are really justified 

This issue is not a new one and there are various approaches but without reading your lease I cannot say for sure which you should try.  If you want to ping me the relevant text by the private link I can have a butcher's.

STEP 1: READ YOUR LEASE then consider....

Option1:  Ignore the letter.  Unless your lease is pristinely clear on the subject of sub-letting without Landlord consent, I wouldnt recommend ignoring the letter.  As this is unlikely to go away.

Option2: Fight them.  Ask them for a copy of the insurance document.  This should show where the insurer requires this information Also ask for a detailed breakdown of the costs that are to be covered by the fees.  You should suggest somewhere in this request you "may take this matter up with the [Leasehold Valuation Tribunal or other such entity that is denoted in the lease on disputes] pursuant to para5 of  Schedule  11  Commonhold  and  Leasehold  Reform  Act  2002"
Note: you have a right to the insurance information under the Landlord and Tenant Act 1985 s30A.  There is a whole Schedule at the end of that Act that covers the Tenants (your) rights with respect to Insurance.
The aforementioned letter might make them think that (a) you know what you are doing (b) the cost of going to Tribunal may put them off because they may end up with 40+VAT (see below)

Option3: You could try and settle the matter at £40.00+VAT.  Settling might be appropriate simply because usually many insurers do want to know who is living in the property (usually whether DHSS/working etc,  but that doesnt seem to be something they have asked for so I am suspicious) but in any case you may have to seek the Landlord's permission to sublease and they can charge a reasonable fee for that consent. 

There are a number of Tribunal cases on this matter the latter indicated (and I stress indicated - all cases are different) that £40+VAT might be appropriate. (note Tribunal cases are not binding law so no silver bullet for you).
I suggest you read the following (from the section Further Decision on page 8 - it is written in a layman friendly way).
  http://landschamber.decisions.tribunals.gov.uk//judgmentfiles/j823/LRX-33-34-76-102-2011.pdf

You will see that the MA has a point - there may be a requirment for you to seek their consent, but that consent should not be unreasonably withheld, and not paying a reasonable fee will make their refusal reasonable..if you can follow what I mean.
The danger with option 3 is you get trapped each time you have a new tenant/or each time they renew the insurance you have to pay £40+VAT

Hope that helps.

Best of luck

Hi!

Wow, thank you so much for taking the time to reply in a detailed manner and for providing a few options to take for the next step.

I'll be sure to read through the link you posted as well and for the initial stage, asking for their insurance documents and details of costs is a good start.

Thanks again!