Restrictive Covenant Planning Approval

[Targus]

I live on an estate which is run by a management company.
We all own our properties freehold, but have restrictive covenants which mean that the management company must approve any plans for development in addition to the normal local council planning office.
The fee for this planning consent is approx £500 which is not too unreasonable.
However, the management company demand payment of a five figure sum from any residents that demolish their house and rebuild.
We are currently in the process of rebuilding, have paid the planning approval fee, and received a letter stating that the plans are fine, but that formal approval will be withheld until we have paid the five figure sum.

Is it legal for the management company to withold approval in this way ?

We have heard from builders quoting for the project that other residents have not paid the charge and it is largely voluntary.
Obviously this is word of mouth and may be incorrect information.
Is there any way to force the management company to divulge how many house builders pay the charge and how many don't ?

 

[Neg Covenant]

The management company should not be charging for anything beyond their reasonable costs. You should check the wording of the covenant.

Unless the management company has incurred large fees or spent a lot of time on it then it may be unreasonable. It may be the case that uder the terms of the covenant or the law the management company should not unreasonably withhold consent. Withholding consent because the person will not pay an unreasonable fee may well be unreasonable.

The management company should only need to check the plans and make sure they are in character. Your own solicitor should draft any deed of consent so no legal fees there for the Management Company or they should give you their standard form consent.

It may be also worth asking for a copy of the agreement whereby the managing agents were appointed as it is likely them who are looking for the high fees.