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Apr, 2014

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  1. #1

    Post Sale of a Leasehold Flat and the deed of Covenant

    I am in the process of selling a Leasehold flat. The freeholder is requesting that I sign a deed of covenant at a very high fee, and also another rediculously high fee for the managing agent to respond to the enquiries. Does anyone know if there are ways around this?

  2. #2
    Join Date
    Apr 2006
    Location
    Hampshire
    Posts
    1,047

    Default

    Look at the lease!

    If the lease requires this on a transfer then you are stuck. You may be able to contest the size of the fee at the LVT (others will tell you if you can) but there would be a timescale involved and that could put off your buyer. Moral generally in this sort of case is "pay up and say nothing" because if I was acting for a buyer and I found out that you were arguing about the fee (or I found out how much the fee was) I would be telling the buyer seriously to consider not proceeding because there was a rip off landlord involved.
    RICHARD WEBSTER

    As a conveyancing solicitor I believe the information given in the post to be useful (provided it relates to property in England & Wales) but I accept no liability except to fee-paying clients.

  3. #3
    Join Date
    Jan 2011
    Posts
    490

    Default

    What price are they requesting for the deed?
    Does your lease require you to enter into a deed?

    What price are they requesting for the enquiries?

    It might be best to keep quiet and pay up to get your sale, just make sure your solicitor asks all the relevant questions,(so he doesn't have to request they answer more questions,at extra cost to yourself)
    Normally I charge 200 pounds for answering sellers information.Then if they request more information I charge 5 pound per question
    Time is money for everyone!
    If the price is high ,pay,sell the property,then go to the lvt to determine if the cost is reasonable.

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