UTLC LANDLORD AND TENANT – Administration Charges – purpose of covenant not to underlet without consent – charge for consent to underletting – whether payable in absence of express reference in lease – reasonableness – whether fee for registering underlease an administration charge – Landlord and Tenant Act 1927 s.19(1)(a) – Commonhold and Leasehold Reform Act 2002, Sch. 11, paras 1 and 5 – Landlord and Tenant Act 1988 s. 1 – appeal allowed
Deputy President, Martin Rodger QC said that the purpose of charges for consent to an underletting or assignment is to reimburse the landlord’s reasonable expenses of considering whether to grant consent, including administrative expenses. The covenant requiring consent ‘may not be used as a source of profit for landlords or their managing agents’, and: ‘it is not reasonable to treat the requirement to obtain consent as an opportunity to charge a fee unrelated to the costs of the routine enquires or administrative tasks which are appropriate in most cases.’
Martin Rodger QC, Deputy President
[2014] UKUT 59 (LC)
Bailii
Landlord and Tenant Act 1927 19(1)(a), Commonhold and Leasehold Reform Act 2002, Landlord and Tenant Act 1988 1
England and Wales
Landlord and Tenant
Leading Case
Updated: 02 November 2021; Ref: scu.521511