Q
Mum mum has been letting out her flat for seven years, but has now been issued with a subletting fee off £130. This seems unfair as the Upper Tribunal has reported that £40 is a reasonable fee. Can we just pay £40 and hope they don’t know about the previous years?
A
Problematic. Your mum seems to be in the wrong for subletting her flat for some time without the freeholder’s consent, which is a breach of lease. No court will sympathise. So you are not in a strong position to quibble about the sublet fee. Our advice to all leaseholders is to pay the demand and then seek a written ruling on the reasonableness of the fee. The key point is: Pay first; fight second. This avoids the risk of legal fees, if the leaseholder is unsuccessful.
That said, it is essential to check your lease to see that a sublet consent is actually required at all. If in any doubt, ask the freeholder to identify the clause in the lease that requires his consent and fee.
Dreamed-up subletting fees are a nice, not-so-little earner for freeholders: sometimes the demand for a fee is served on flat owners who have never sublet at all.
Pier has even served subletting fee demands on the dead.
