Freeholders plans to extort more profit from property owners

I own and manage 8 flats and 5 commercial units.
All leases have got written ( not less than £30 or £50 charge will be payable) but it doesn't mean to apply an extortionate amount of £126!
I have a leasehold properties in a nearby development the management company & Directors of the Freeholder's company are in bed and apply grossly extortionate amount of
charges of £300+. Its sickening at times of greed by some.
Common sense has to prevail. Sometimes Calmer approach works better.
Its not worth making solicitors rich.

Estates and management have tried the same with me on 3 different flats on two different estates wanting i think £160 for registration and then a charge every 6/12 months at renewal of tenancy. we all know this is just a money making racket and something should be done about it. I offered them £45 with a threat of legal action against unreasonable costs if they didnt accept . They did but every couple of years they try the same thing again

Reply to the comment left by terry sullivan at 09/10/2017 - 12:21
Did the freeholder take you to court/tribunal? Have you tried to sell one of the properties in dispute? Problem is if I refuse to pay the charge will remain outstanding and if I want to sell it will have a negative impact on this.

This is an administration charge and requires the freeholder to serve proper notice in the prescribed format. Check it out on the LEASE website. Advise them that you dispute the legality of the charge and you will take it to First Tier Tribunal.

"If your lease requires you to obtain consent to sublet the property, your landlord may be able to charge a reasonable administration charge.

"Any administration charge demanded by the landlord must be accompanied by a summary of leaseholder’s rights and obligations in respect of administration charges, otherwise the charge is not payable"

It sounds like one of those rare examples where many of the owners are 'onside' and not indifferent about right to manage, so could pursue that.

The CMA are looking to change the leasehold system, where possibly the managing agent is appointed by the owner (tenant) and not the freeholder.
Ideally this admin layer can be switched as per the billing function of utility bills. The managing agent would compete for tenants with low prices and still meet basic requirements for the freeholder. This way, legal frameworks remain intact but managing agents fees would deflate in a competitive environment.
I filled in a requests for comment about this last week; the CMA questions and tone suggested the leasehold game is up. But we shall see.

Reply to the comment left by Puzzler at 09/10/2017 - 13:41
Frustratingly matters pertaining to 'Registration' fall outside the FTT remit (we are reliably advised) and our only recourse is via the County Court route - expensive, time consuming and risky!

Reply to the comment left by Gary Nock at 09/10/2017 - 23:48
Thanks Garry - it is not however a charge for 'permission to sublet' but a charge to register the tenants - again we have been advised by solicitors that the fee for registration is not an 'administration charge' according to the definition and can't take it to the FTT. Apparently we can take the £180 Legal Fee they have added on top though for chasing it - bizarre, quite bizarre.

Reply to the comment left by Dave Smith at 29/10/2017 - 18:35
I meant to try to get a ruling that the charge is unreasonable, I think that will be covered. In any case call the LEASE people, they will give you free advice and are very helpful

Reply to the comment left by Puzzler at 30/10/2017 - 17:40
Thanks however already had advice from Lease and it is they who have confirmed the FTT won't deal with the charge (as it is not an 'admin charge' (go figure) as it related to registration and the only recourse is via the County Courts.