Interest sheet -Help please

[HP Mum]

Hello

As a landlord owed ground rent since 2019 can I use the interest rate sheets on here?

I'm a bit foggy brained on this.  In the past I have used the sheets to calculate 8% simple interest or say 29% compound interest on credit cards to reclaim £s taken by banks as late fees.   

In this instance its ground rent that I am owed every 6 months, which hasn't been paid.  Not much. But still owed.  Non-payment also makes the leaseholder in breach of lease. However the sum is very small and I just want to reclaim the money.   

The lease allows for 4% over base.  But of course the base rate has changed from 0.75% to 5.25% since 2019.   How do I account for the base rate changing on the excel spreadsheet?   Or I can't or don't?  I just add today's base rate in the % box and calculate at today's rate, irrespective of the base % being lower in 2020-22?   

Do i have to generate separate sheets for each sum owed?  Or just bulk them all together?   Sorry for sounding stupid.  I'm having a mental block on how to account for the base rate changes to create an appropriate invoice including interest to date which isn't going to be rejected

[dx100uk]

unless you'd already advised them in writing if arrears occur you'd charge xx% interest, you can't AFAIK.

dx

 

[HP Mum]

4% above base (Nat West) for unpaid ground rent is covered in a clause in the lease.   

Have sent demands according to the rules. Its payable twice a year - so invoices are raised within 1 month before due date.  Remains unpaid. 

Unpaid GR within the lease actually provides an ability to serve for breach of lease and forfeiture. But its such a small sum - I just want to bill them

Have advised will be sending over a sheet including interest payable.  Now I just need to figure out how to do it !!

 

Edited September 25, 2023 by HP Mum

[AndyOrch]

Topic moved to the appropriate forum  Residential and Commercial lettings/Freehold issues Forum 

[dx100uk]

ok so they are aware .

the gradual increase is certainly going to to be a pain to adapt into our existing sheets .

but yes it wont be using the compounded sheets just an adapted version of our 8% simple int one.

dx

 

[HP Mum]

Ok.  I will play with that. Although I may need some help

[HP Mum]

Can I have a pointer to the correct template please

[dx100uk]

im wondering if it might be easier to use the foscisheet and use an avg int for the whole period?

 

[HP Mum]

The problem is the amount of interest rate changes. From 0.75 to 5.25. How do I average that??!!

[dx100uk]

i would use say 2.75 , it depends upon how long each change applies for, as of recent interest rates rose sharply in a vey short time but a cheaper earlier rate might have existed for xx time .

to be honest, if you get it wrong they'll tell you, its not as if the money is not owed just how much. it cant dismiss all the case if wrong.

[HP Mum]

The arrears started in 2019

[HP Mum]

The terms are 4% over base. 

I have checked the interest rates since March 2019, when they changed and for how long each interest rate lasted, and added the 4% over.

The minimum chargeable rate is 4.75%.  The maximum (currently) is 9.25%

How on earth do I input the figures into one of these calculating sheets (suggested FOCI) ??

 

Mar 19 - Mar 20 =1y at 0.75% + 4% = 4.75% chargeable

Mar 20 - Dec 21 = 21m at 0.1% = 4.1%

Dec 21 - Feb 22 = 2m at 0.25%  = 4.25%

3 Feb -  17 Mar 22 = 0.5% for 6w = 4.5%

17 Mar - 5 May 22  = 0.75% for 7w = 4.75%

5 May - 16 Jun 22 = 1% for 6w = 5%

16 Jun - 4 Aug 22 = 1.25% for 7w = 5.25%

4 Aug - 22 Sep 22 = 1.75% for 7w = 5.75%

22 Sep - 3 Nov 22 = 2.25% for 6w = 6.25%

3 Nov - 15 Dec 22 = 3% for 6w = 7%

15 Dec - 2 Feb 23 = 3.5% for 6w= 7.5%

2 Feb - 23 Mar 23 = 4% for 7w = 8%

23 Mar -11 May 23 = 4.25% for 7w = 8.25%

11 May - 22 June 23 = 4.5% for 6w = 8.5%

22 June - 3 Aug 23 = 5% for 6w = 9%

3 Aug - now 23 = 5.25% for 10w (to date & continuing) = 9.25%

 

 

 

[dx100uk]

use the avg of all.

dx

 

[HP Mum]

i have 10 invoices which were raised over the last 4 years. 

Might it be an idea to create 10 excel sheets?

I'm struggling to do this !

[dx100uk]

that makes your life easier in a way then regarding interest.

one spreadsheet for each invoice

the int rate for that period wont change that much in a year.

i cant see how to change the int rate (as ims21 wrote it) in our statint sheet

but there are many simple int tutorials on youtube

Simple-Interest+Excel+Spreadsheet+Template - Bing

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unless you got tenants to sign & agree to specifically pay 'compounded int' on any arrears (you would have had to have used those EXACT words) you can only charge stat int at your rate for the duration of each invoice.

dx

 

 

[HP Mum]

The exact wording in the lease is 4% above base (Nat West) on GR arrears.

I had assumed just 4% over base, not 8% stat interest.

I have an associated issue.

One lawyer I had used (friend paid for initially/ then I used rest of my savings) was supposed to be a top dispute lawyer at a top firm - but ended up being completely negligent. 

My issues would all have been settled 3.5y ago if he had read legal docs I had sent him.  He admitted in writing that - over a 1y period - he had never even looked at them because he did not think them relevant to my issues.   They were actually crucial.  I made a formal complaint to his firm.  I have been very busy with all sorts of other associated issues but they are aware that my intent is to bring a huge negligence claim against them. 

They are communicating and they have admitted negligence on parts of my complaint.   One of these was that they should have known my eligibility for 'help with fees' in the court system.  They made applications and agreed orders and charged all costs to my account over a 2y period.   They also pressured me to pay a huge court fee to file and submit an amended defence and counterclaim, which I did.  2 months later I 'sacked' them and took control of the process myself. 

At this point I learned about my eligibility for 'hwf'. One has a 3 months window in which to ask for a refund from the court.  I was in time to request a refund of the huge court fee.  I then made my formal complaint to the law firm.  It took 7 months but the law firm eventually repaid this court fee.   

My query - relating to this - now is can I also claim 8% stat interest on the 7 months I was out of pocket? (from date of payment to reimbursement).   I have written to them suggesting that I reserve the right to charge it. Was/ is this correct?

Secondly, the law firm complaints dept have listed all the applications/orders that were made and added to my account.  My records vary slightly and I have asked them to  re-check. They add up to quite a lot of money. They  have agreed to reimburse these sums. 

Although they ridiculously appear unfamiliar with the court process - the 3 months window - as they suggest I write to the court to ask for the refunds.  I can't because the window of opportunity has passed; they will have to reimburse me out their own pocket.  I have told them this.   Same question as above - can I now add 8% stat interest to each sum from the date of payment using the appropriate excel sheet?

Aside from this - am I shooting myself in the foot in terms of my much bigger negligence claim if I start asking them to settle bits now?   Although asking for these 'bits' to be resolved now does not alter the fact they were grossly negligent on a bigger issue

Re my 1st question - I had an idea that I could add in the charges up until the interest rate change. Then I could start a new excel sheet bringing the balance forward. I'd change the % and let excel work out the sum until the next interest rate change.  And then start a new sheet with the new balance brought forward and so on....

But I am having problems changing the %. excel doesn't seem to like it when I change the box that has 8% simple interest written to 4.5 or 5.25 etc

What am I doing wrong?

 

[dx100uk]

which sheet?

dx

 

[HP Mum]

The stat interest sheet v101

[dx100uk]

i've not found how to change the 8%

i saw *rate* in the formula which points to rate which must be the 8% but ive not worked on excel in 20yrs, then i could find it in 2secs...not now.

if you find it then all you do is charge it to whatever you want from 8%. then you are away.

dx

 

[HP Mum]

Thanks dx.  I have no idea about using excel.  I've tried googling  but haven't found anything that I understand. 

I tried using the existing template but the 8% seems fixed.  Even if I write, say 4.75%, it still calculates 8%

Maybe an excel expert will come along?

[honeybee13]

In case an expert doesn't turn up, have a look on google to see if people have posted tips on excel. Youtube often have helpful videos on all sorts of topics.

HB

[HP Mum]

Thanks. Yes. I tried yesterday. And will try again. I hold my hands up though and admit formulas are not my thing - so I do hope an expert comes along !