Jeffrey Shaw Posted March 31, 2017 Share Posted March 31, 2017 (edited) Do not pay such fees. Why? Well, here's s.19(2) of LTA 1927 from http://www.legislation.gov.uk/ukpga/Geo5/17-18/36/section/19 (with my underlinings added): In all leases whether made before or after the commencement of this Act containing a covenant condition or agreement against the making of improvements without a licence or consent, such covenant condition or agreement shall be deemed, notwithstanding any express provision to the contrary, to be subject to a proviso that such licence or consent is not to be unreasonably withheld; but this proviso does not preclude the right to require as a condition of such licence or consent the payment of a reasonable sum in respect of any damage to or diminution in the value of the premises or any neighbouring premises belonging to the landlord, and of any legal or other expenses properly incurred in connection with such licence or consent nor, in the case of an improvement which does not add to the letting value of the holding, does it preclude the right to require as a condition of such licence or consent, where such a requirement would be reasonable, an undertaking on the part of the tenant to reinstate the premises in the condition in which they were before the improvement was executed. So L cannot charge a lump sum for consent: only its legal/admin. fees for giving consent. And failure to provide consent within a reasonable time (e.g. max one month) or on reasonable terms equates to unreasonable withholding. Edited March 31, 2017 by Jeffrey Shaw Link to comment Share on other sites More sharing options...
stylefree Posted April 4, 2017 Share Posted April 4, 2017 read somewhere that there was and Act that no action can be taken if 6 years have passed for ground rent and 12 years for anything else. perhaps this might help original poster Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted April 5, 2017 Share Posted April 5, 2017 read somewhere that there was and Act that no action can be taken if 6 years have passed for ground rent and 12 years for anything else. perhaps this might help original poster Yes, the Limitation Act 1980: http://www.legislation.gov.uk/ukpga/1980/58/contents See sections 5 and 8. The six-year period in the former applies to contract debts (inc. rent arrears) even if the rent is reserved by a 'Specialty' [meaning a Deed] because of s.8(2). Link to comment Share on other sites More sharing options...
PetePal Posted April 13, 2017 Share Posted April 13, 2017 Do not pay such fees. Why? Well, here's s.19(2) of LTA 1927 from http://www.legislation.gov.uk/ukpga/Geo5/17-18/36/section/19 (with my underlinings added): In all leases whether made before or after the commencement of this Act containing a covenant condition or agreement against the making of improvements without a licence or consent, such covenant condition or agreement shall be deemed, notwithstanding any express provision to the contrary, to be subject to a proviso that such licence or consent is not to be unreasonably withheld; but this proviso does not preclude the right to require as a condition of such licence or consent the payment of a reasonable sum in respect of any damage to or diminution in the value of the premises or any neighbouring premises belonging to the landlord, and of any legal or other expenses properly incurred in connection with such licence or consent nor, in the case of an improvement which does not add to the letting value of the holding, does it preclude the right to require as a condition of such licence or consent, where such a requirement would be reasonable, an undertaking on the part of the tenant to reinstate the premises in the condition in which they were before the improvement was executed. So L cannot charge a lump sum for consent: only its legal/admin. fees for giving consent. And failure to provide consent within a reasonable time (e.g. max one month) or on reasonable terms equates to unreasonable withholding. I have been thinking along the lines of Legal Indemnity Insurance and not seeking consent at all, but it seems that one of the criteria to get the insurance is not to have had contact with the L regarding consent. That's difficult as the Agent no longer displays the fee on their site as they used to. (clever move!) Is it true that only a Solicitors can issue this type of insurance. I also thought buying the Freehold would be of better value but I guess that the Agent will now make sure that any charge for consent is wrung out before selling the Freehold. So other than trying to reduce the £495 required by the Agent to carry out services on behalf of the L, I'm a bit stuck. Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted April 14, 2017 Share Posted April 14, 2017 Is it true that only a Solicitors can issue this type of insurance. No, but solicitors tend to be agents for the insurers and empowered to issue policies. I also thought buying the Freehold would be of better value but I guess that the Agent will now make sure that any charge for consent is wrung out before selling the Freehold. No. The value of the f/r depends mainly on the lease's unexpired term and the receivable ground rent (+ on the property's open-market value, if the unexpired term is < 80yrs). Hoped-for consent fees are irrelevant, esp. as the 1927 Act effectively makes them unlawful. Link to comment Share on other sites More sharing options...
mafya Posted April 14, 2017 Share Posted April 14, 2017 I have been thinking along the lines of Legal Indemnity Insurance and not seeking consent at all, but it seems that one of the criteria to get the insurance is not to have had contact with the L regarding consent. That's difficult as the Agent no longer displays the fee on their site as they used to. (clever move!) Is it true that only a Solicitors can issue this type of insurance. I also thought buying the Freehold would be of better value but I guess that the Agent will now make sure that any charge for consent is wrung out before selling the Freehold. So other than trying to reduce the £495 required by the Agent to carry out services on behalf of the L, I'm a bit stuck. I would bite the bullet and buy the freehold...... Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted April 14, 2017 Share Posted April 14, 2017 I would bite the bullet and buy the freehold...... Yes, I agree- but take care not to overpay or give in to L's outrageous demands. Link to comment Share on other sites More sharing options...
PetePal Posted April 21, 2017 Share Posted April 21, 2017 As this is a project with my son and we are ready to put the house on the market, I was thinking Indemnity Insurance would be the quickest and easiest way if we could get over the problem of me having contacted the L's Agents regarding permission. I assume the cover would only be for the value of the extension not the full value of the house. If not it will have to be purchase the freehold although I'm not sure if that could have an effect when I try to purchase the freehold of my own house from the same L. Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted May 1, 2017 Share Posted May 1, 2017 I'm not sure if that could have an effect when I try to purchase the freehold of my own house from the same L. No. Each transaction is independent. Link to comment Share on other sites More sharing options...
sedith Posted July 25, 2017 Share Posted July 25, 2017 Looks like the government is wanting to stop this ridiculous leasehold arrangement. About time I say! Link to comment Share on other sites More sharing options...
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