June 15, 2024

How can we avoid paying one per cent on renting out our retirement leasehold flat?

Q&A2My father has now moved into care.  We are hoping to let his leasehold flat out as selling is very hard!

It seems there is a clause in the contract which says that we have to pay Peverel 1% of whatever they value it as if we want to let to another tenant.

This seems excessive.  Can I avoid paying? Can I challenge their valuation?

 First, it is a common mistake to assume that this is a charge from Peverel. The freeholder receives this money and the Office of Fair Trading thinks these charges in the lease are unfair contract terms.

 Read this link for the Campaign against retirement leasehold exploitation subletting file.

 Peverel does get undeserved flack for enforcing conditions in the lease. It is employed by the freeholder, which is its client. Leasehold owners ARE NOT the clients of Peverel or any freeholder-appointed managing agent.

 If your freeholder is a Tchenguiz Family Trust company (which is likely: Fairhold or Proxima for e.g.) they have undertaken to waive the one per cent fee for an £85 subletting charge.