April 22, 2024

£4,000 sublet fee at Butler’s Place

The highest sublet fees LKP has encountered exist at the retirement site Butler’s Place, in Milford, in Surrey.

In some retirement leases subletting fees of 1 per cent of the purchase price or value of a flat are charged at each subletting.

In theory this means that if you have, say, three tenancies in a year, you will be subletting the property at a considerable loss.

The fees at Butler’s Place are extraordinary, even though most of the money in fact goes into the site’s contingency fund rather than to the freeholder (in this case E&J Capital Partners).