Freehold Managers (Nominees) Ltd v Piatti

This was another case concerning the payment of an administration charge in connection with a sub-letting. In outline, Mr & Mrs Piatti were the leaseholders of a flat and FM(N) Ltd were the freeholders. The lease prohibited subletting without consent, such consent not to be unreasonably withheld. Subletting took place without consent and FM(N) Ltd pointed out that consent was needed and suggested a range of fees, depending on whether the leaseholders wanted “one off” consent or a licence for up to five years. The parties were unable to agree a fee and so the issue went to the LVT. The LVT found that nothing was payable as the lease didn’t expressly mention a right to charge a fee. The UT allowed an appeal. The right to require consent included with it a right to demand payment of a reasonable fee, i.e. consent can be on terms that include payment of a fee. On the facts, £165 was reasonable.