Arrears in ground rent

[king100]

Morning

 

I have just been sent a letter asking for over £2000 in ground rent for my flat payable in 14 days otherwise they will pass it onto their solicitors and add fees and charges.

 

Long story short.

 

Management company changed hands a few times, I asked for an outstanding balance in August 2017. I now have whats outstanding some 6 months later.

 

I have done some research and correct me if I am wrong but according to Section 166 of the Commonhold & Leasehold Reform Act 2002 they must send me a letter in the correct format and allow me between 30 and 60 days to pay the arrears.

 

I have already said that I can pay 2/3rds in a lump sum and the pay the remainder off plus my usual monthly payments which was declined.

 

Am I correct in saying that because they did not request the arrears in the correct way and allow me 30 days to pay the balance that I can inform them of is near the end of 14 days.

 

They are also claiming that they can charge me solicitors fees, which 3 years ago amounted to £1200 for a debt of £1700. This went to the Small Claims Court, the judge awarded costs but they decided to add on another £800 which I do not know what it is for. Dont these cost seem unreasonable. The case never went to court, if all the solicitors cost nearly as much as the debt.

 

i have asked for copy invoices of the solicitors fees and well as documentation but the management company have refused this unless I pay the full outstanding balance.

[honeybee13]

Hello there.

 

I could be misreading your post, but you seem to be saying it went to court when costs were awarded and then you say it didn't. Could you clarify please?

 

HB

[AndyOrch]

Thread moved to the appropriate forum...please continue to post here to your thread.

 

Regards

 

Andy

[king100]

Hello there.

 

I could be misreading your post, but you seem to be saying it went to court when costs were awarded and then you say it didn't. Could you clarify please?

 

HB

 

The previous time it went to court years ago. This is a new one,

3 changes of management company

stopped paying as didnt know which one to send it to

then new management plucked some figure out from 1 line of excel and said thats what i have to pay.

 

I said show me those details. That was back in Aug 17.

They have now written to be saying you owe £2k plus if you dont pay within 14 days we will add the solicitors fees from the last time we took you to court to this debt.

Edited March 7, 2018 by dx100uk
spacing

[dx100uk]

surely if it wasn't judged then they cant charge any legal fees?

[king100]

They want to charge the legal fees from last time and add that to my outstanding balance of ground rent.

[king100]

surely if it wasn't judged then they cant charge any legal fees?

 

im not worried about those fees, they had demanded 14 days to pay yet have served that info to me incorrectly and according to Section 166 of the Commonhold & Leasehold Reform Act 2002 they need to allow 30 days to make payment. They have allowed 14 days.

 

I hope my thinking is right where upon day 14 I can email them and state that they have served me wrong and that 14 days is not allowed under Section 166 of the Commonhold & Leasehold Reform Act 2002, it should be 30 days min, then pay them the lump sum, which leaves me with about £700 to pay, that gives me 30 days to find that.

 

Plus if they take me court I will have my day in court and express to the judge that I have paid a lump sum and offered a repayment plan yet they declined it. If all fairness if they decide to take me court and win the court will make me pay less after I have filled out my N245 form.

Edited March 7, 2018 by honeybee13
Paras

[disgruntled2007]

im not worried about those fees, they had demanded 14 days to pay yet have served that info to me incorrectly and according to Section 166 of the Commonhold & Leasehold Reform Act 2002 they need to allow 30 days to make payment. They have allowed 14 days. I hope my thinking is right where upon day 14 I can email them and state that they have served me wrong and that 14 days is not allowed under Section 166 of the Commonhold & Leasehold Reform Act 2002, it should be 30 days min, then pay them the lump sum, which leaves me with about £700 to pay, that gives me 30 days to find that. Plus if they take me court I will have my day in court and express to the judge that I have paid a lump sum and offered a repayment plan yet they declined it. If all fairness if they decide to take me court and win the court will make me pay less after I have filled out my N245 form.

 

If they sent you the bill in August 17 then you’ve had your 30 days and then some. I’d say this 14 day thing is to put pressure on you to pay the outstanding amount.

 

EDIT.

 

A second read suggests you requested a bill in Aug 17 but it has just arrived. However you have used the word arrears and state you stopped paying in which case they are well within their rights to demand payment of arrears forthwith.

 

What happened with the court case and costs. Is that all finished with?

[king100]

Court Case is done yet they are bringing up the solicitors fees.

 

I requested a bill Aug 17 as was in dispute with the amount. Just received the bill and statement demanding full payment in 14 days. Not according to law if I am reading this right they cant demand full payment in 14 days.

 

Section 166 of the Commonhold & Leasehold Reform Act 2002

 

(3)The date on which the tenant is liable to make the payment must not be—

(a)either less than 30 days or more than 60 days after the day on which the notice is given, or

(b)before that on which he would have been liable to make it in accordance with the lease.

(4)If the date on which the tenant is liable to make the payment is after that on which he would have been liable to make it in accordance with the lease, any provisions of the lease relating to non-payment or late payment of rent have effect accordingly.

(5)The notice—

(a)must be in the prescribed form, and

 

14 days and just a letter not a prescribed form.

 

Dont get me wrong I will pay the amount, I just have the money, and they are unwilling to accept a payment plan and a 2/3 payment towards it.

[disgruntled2007]

So list the arrears, chronologically - showing when they were due etc...

[king100]

So list the arrears, chronologically - showing when they were due etc...

 

How is that going to help?

[disgruntled2007]

There is no clarity in your posts. This will allow the experts to view the situation chronologically and offer you the best advice.

 

Now, in my opinion, your 30 days are probably so over it’s not worth mentioning. Here’s how I see it:

 

You had a bill before August 17 which for one reason or another you disagreed with.

 

So, whenever that FIRST bill arrived is the day the 30 count started....

 

See what I’m trying to say?

 

You’ve offered nothing to suggest otherwise, hence the continuing questions...

[king100]

ok and even the 1st bill wasent served correctly as stated above.

 

This is what i am reading and as far as I am aware they have not followed this correctly. https://www.lease-advice.org/article/ground-rent-a-demanding-notice/

 

My 30 days start when I get a formal request for my arrears in the correctly prescribed form, which they havent done.

[disgruntled2007]

Ok. Good luck.

[king100]

Ok. Good luck.

 

Cheers just need an extra 30 days to pay yet they are having none of it.

[andydd]

Ignore the 14/30 days bit..its just confuses things

 

GR is only payable if S166 complied with..if no valid demand than nothing is payable BUT a landlord can save up 6 years worth thjen send you the demand..this would be payable immediately..as you should of know GR would be payable and put it aside. Extra fees can only be added on if the lease allows (unlikely) or exact fees as awarded by the court..so its unlikely anything extra could be added on.

 

There is a new law that also gives LHs further rights to ask an FTT if such fees are payable - as per here > https://forums.landlordzone.co.uk/forum/long-leasehold-questions/1006123-new-s5a-of-commonhold-act-2002-disallowing-legal-costs-as-admin-charge