ARMA ASK THE PROFESSIONALS
Surgery Guidance Directory
Findanagent
41 44 46 48
ARMA SURGERY
BruceMaunder Taylor, a chartered surveyor andmember ofARMA’s council, provides answers to readers’ questions
LandLord heLd to ransom QUestIonIownasmall number of flats inaparticularblockwhichIhave found to be good forlettingand rental income
return.Itisagoodqualityblockowned andmanaged by the lesseeswho for somereason have decided theywant
meout.Bythe termsofthe lease Ihave to have their consent to sub-lettings whichIalwaysdo, butnowtheyare taking so long to givemeconsent that I lose tenants before the consent arrivesand theychargemeasolicitor’s fee of£400 plusVaTfor each consent granted,whether or notthe proposed tenant is still available to take the flat. It’s grossly unfair,what canIdo?
ansWer Thereareanincreasingnumber of management companies thathavehadbad experienceswith flats being let tounsuitable
ornuisance tenantsandsomeof themare reactingin theway
youdiscuss.Formost leaseswith clauses requiringlandlord’s consenttosubletsection19(1)(a) of the Landlord&TenantAct 1927 isimportant. It effectively provides that in suchcases the landlordwillnotunreasonablywithhold consent. Takingalongtimebeforegrantingor
refusingconsentisunreasonableandIhave experiencedatleastonecaseinwhichan investor lesseewroteaskingfor consent, drewattentionto this part of the law, complained thathelostaprevioustenant becausetheytooksolongandstated that ifhedidnot receiveconsent oraproperly reasoned refusal(if that be theirdecision) hewouldproceedwith thesub-lettingon thebasis that thelandlordwasinbreachof section19 of the 1927Act. Averyrobustattempt at dealingwith
thepoint,buthealso offered tohave anearlymeetinganddiscuss thisand future applications so that both parties benefited frombetter communication. I wassubsequentlytoldthatsuchmeeting anddiscussiondid take placeandtheyhave agreed somegroundrulesaboutwhat sort of sub-tenantsare acceptable,whatsortof sub-tenants arenot,andamethod bywhich replies to applications are receivedquickly.
With regard to thecharges forgranting consent, theseare administrationcharges within section158andScheduleElevenof theCommonholdandLeaseholdReformAct 2002and, as such,are subjecttochallenge before theLVTif youconsider themto be too high. TwocasesonLandlord’scharges for
grantingconsenttosub-lethave beentaken recently fromtheLVTonappeal totheUpper
Tribunal.For relativelysmallsumsofmoney that issurprising. Nevertheless, in both cases the landlord’s
charges (whichwereneverashighas£400 plusVATin thefirst place)were reducedto £40plusVAT. Someusefulguidancewas givenastotheamount of timeandnumber of people claimed tohave beenemployed by thelandlordsinconsideringandgranting consent. This provisionacts retrospectively in the
sense that if youhave already paid suchfees without agreeingthat they are reasonable, youcanstillmakeanapplicationto theLVT andchallenge themwithaviewtoreceiving reimbursement. However, as always,Irecommendthat
youmeetandtalk first forthereasonthat theoverallobjectiveistodevelopreasonable workingrelationshipsandnot to kickoff WorldWarThree!
the association of residential managing agents (ARMA)isatradeassociationfor firms thatmanageprivateresidential leaseholdblocks of flats in England&
Wales.ARMApromoteshighstandardsof leaseholdmanagement by providingadvice, trainingandguidanceto itsmember firmsofmanaging
agents.ARMAalsoproducesguidancematerials for leaseholdersandResidentsManagementCompanies.With over 270firms inmembership,ARMA alsocampaigns forimprovements in thelegislationgoverningtheleaseholdsector.
Flat Living Autumn2012 41
Ifyouhaveaquery, email it to
info@flat-living.co.uk
Allnamesand addressesare withheld
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