MORGED ESTATE Ltd, ground rent advice needed.

[Dmlm]

This an issue with MORGOED ESTATE Ltd.

They are very rude, do not respond to letters or try at all to settle their demands for ground rents at all but are very quick to write to your lenders and land registry to insert a charge on your property with extortianate adminstration charges.

They are demanding over £650.00 in admin. fee for a ground rent of £8.20.

 

Can anyone advise please?

Edited September 19, 2011 by Dmlm

[maroondevo52]

Hello and Welcome,

 

I have started a new thread for you.

 

Regards.

 

Scott.

[OleBanks]

Hi,

 

I have same similar issue with my ground rent can you please point me to where the above thread is on this web page. thanks

[Dmlm]

Morgoed Estate Ltd add excessive chages in their invoices for collection of any ground rent. For example, they are demanding over £650.00 for a £1.42 ground rent per annum.

Can they demand admi. charges? Are they obliged to provide a copy of the lease proving that these chages are in accordance with the lease? Can legal action be taken against them?

Thank you for any help in advance.

[andydd]

Hi there, firstly they cant just 'put' a charge on your property, there should be a long legal process first, court action, CCJ, etc.

 

Now the law on ground rent was changed a few years back to try to prevent this type of [issue], where freeholders would not remind tenants that ground rent was due and then try and charge huge admin amounts, S166 of The Commonhold & Leasehold Reform Act 2002 was supposed to stop this by making it law that if the ground rent is not properally demanded in accordance with S166 then the tenant owes nothing and thus there are no admin chjarges due.

 

Now whether the freeholder can even add on admin charges in the first place is down to the lease, some may have a clause allowing them, but many other do not.

 

Even so, if a lease does allow them, then you may apply to an LVT to argue that they are excessive and unreasonable in amount (note that LVT's do not have juridstiction over ground rents BUT they do have juridstiction over admin charges relating to ground rents (or more precisely non or late payment of).

 

The first step is to read your lease and try and get an understanding of it (it will prob mention legal/admin costs in relation to S146 Forfeiture action but less likely for service charge and/or ground rent arrears), then check you have received ground rent demands that comply with S166.....................................

 

Secondly pay any ground rent owing (you may find that the freeholder returns this !)..................................................

 

Thirdly ask what clause in the lease allows him to charge admin fees..................................................................

 

Point out you believe fees are excessive and that you may apply to an LVt for a determination................................................

 

As for a copy of the lease, they are under no obligation to provide you with a copy, YOU SHOULD HAVE YOUR OWN !..it is an important contrac, if you dont have one, you can get one from the Land registry.

 

Andy

Edited October 5, 2011 by alanfromderby

[Dmlm]

Thank you Andy

According to the land registry Morgoed Ltd have "have employed a statuary remedy under s121 (4) of the law property act 1925 to secure the sums owing to the rent owner under the rentcharge created by a conveyance dated 17/12/1886. This is noted in the lease. Section 121 (4) allows for a creation of a lease to secure the sums owing. Morgoed are including their cost as part of the sum owing to them which s121 (4) allows them to do"

 

Is there anything that can be done to object against this with the land registry?

 

Many thanks

[andydd]

Thank you Andy

According to the land registry Morgoed Ltd have "have employed a statuary remedy under s121 (4) of the law property act 1925 to secure the sums owing to the rent owner under the rentcharge created by a conveyance dated 17/12/1886. This is noted in the lease. Section 121 (4) allows for a creation of a lease to secure the sums owing. Morgoed are including their cost as part of the sum owing to them which s121 (4) allows them to do"

 

Is there anything that can be done to object against this with the land registry?

 

Many thanks

 

Ive never heard of that, ill look into it.

 

You may wish to visit LandlordZone Forum - Long Lease section and ask there, there are many experts there.

 

Also you can get free advice from http://www.lease-advice.org/ and CAB.

 

HHmm..had a quick look at S121 it maybe appears they can put a charge on the property but Im not convinced, Ive not heard of it before, S146 on the other hand is commonly used (but rarely succesfully) but its a good 'threat', but even then..it must go through a court/LVT process.

 

"Other, more obscure, powers, as set out in s121 of the Law of Property Act 1925, might be invoked. These include the power to appoint trustees to take and distribute the income from the property. These are less likely to be useful, however." from - http://www.practicalconveyancing.co.uk/content/view/10056/1127/

 

 

 

Andy

Edited September 19, 2011 by andydd