Winderbray/JCF PM/PCB Lawers Claimform - Service charge arrears - Refused Payment Plan - Now N244 for SJ+Strike Out.

[1penny]

Hello

i am looking for some help and advise.

My partner and I along with our daughter live in a flat of a block of 12 and are in arrears of service charge for the past few years. Our block underwent major external works as a result of not being maintained very well for a long period of time by the managing agents. The works were about £20k per flat on top of the annual service charge.

Due to Covid (my partner lost his job) and the cost of living crisis we have been unable to pay in full. We were speaking to the managing agent and trying to pay as much as we could afford and explained our circumstances. I also lost a parent suddenly during covid and couldn't have a funeral. This is still hurting me now. The managing agent then appointed solicitors who again we tried to reach an affordable payment plan with but they refused. We still continued to make payments. We had almost reduced the arrears down to 50pct in the past year, which has been a struggle. 

There was e-mail communication and various threats of action. The last e-mail which unfortunately went into my junk folder I did not see until late where again legal action was being threatened.

Having returned from my mothers last night, we found a Claim form in the post from Northampton issued on 14th February.

I haven't been able to sleep all night as I am anxious and worried and do not want my family thrown out of our home and onto the street. I must avoid a CCJ as this will impact my job which will not help anybody.

Appreciate any advice as to how we should proceed. We really want to pay this but need more time and I can't afford to get a CCJ.

Thanks 

Penny

[AndyOrch]

Topic moved to General Legal Issues forum.

Can you scan redact and upload a copy of your claim form please.

 

Andy

[1penny]

Hello Andyorch

Many thanks for your prompt response.

I don't have access to a scanner at the moment, Can I type the particulars of claim excluding names and addresses ?

 

Thanks

 

Penny

[Nicky Boy]

Can you take a good quality pic, convert to pdf, then upload it?

Read > upload <.

[AndyOrch]

10 minutes ago, 1penny said:

Hello Andyorch

Many thanks for your prompt response.

I don't have access to a scanner at the moment, Can I type the particulars of claim excluding names and addresses ?

 

Thanks

 

Penny

Sure but if you could do as above that would be an advantage then we see the finer details issue date claimants contacts etc.

[lolerz]

Just out of interest, did you continue to pay your normal Service Charge and Ground Rent (if not peppercorn) obligations during this?

[1penny]

Ok so I show the claimant and lawyer details and address, but exclude our details from the particulars ?

[1penny]

We paid what we could in terms of normal service charge.

There have been many other works previously such as electrics and boundary walls so we have had a lot of expense.

[AndyOrch]

8 minutes ago, 1penny said:

Ok so I show the claimant and lawyer details and address, but exclude our details from the particulars ?

Yes anything that identifies yourself,  also the claim number.

[lolerz]

To confirm, the arrears aren't just the Additional Levy, but also regular Service Charge arrears?

Was it one piece of work that caused the additional levy, or multiple? Did they go through the proper Section 20 consultation process for these?

Did you try to agree a regular payment plan that covered *at least* the most recent Service Charge period?

The good thing here is that as it seems the managing agent has continued to accept your payments, they clearly don't deem you as in breach of lease. Which means that can't apply for a S146 order (normally the next step after a CCJ) for repossession of the property.

 

[1penny]

I think mainly the additional levy. The service charge was inceased by £5000 for several years on top of the normal service charge which was £2000.

Although we tried to agree a payment plan, nothing was formally agreed but we paid what we could.The solicitors refused several offers but we tried to maintain a regular amount and paid a small lump sum from a loan.

We have continued to make payments to the managing agents up to now but don't know going forward because of this claim.

Should a letter before action have been sent to both of us in the post rather than just an e-mail to me which wasn't headed Letter before action ?

I believe that they went through the correct section 20 consultation process.

[lolerz]

Absolutely yes, the Solicitors should have sent the LBA by post. That's part of CPR rules.

Even it you accepted service by email, it should have been made clear beyond reasonable doubt that it was a Letter Before Action.

However, it's unlikely you'll get the claim thrown out for that.

I would recommend stopping payments now so that it doesn't disrupt your position in court as to whether the money is owed.

I would argue that while normally we wouldn't need to see the statements as part of the CPR 31.14 request you'll be making as part of your defence, we most likely would here as we'd need to see how the arrears are made up.

Ideally, we'd need a timescale of when the Section 20 process started, when the additional levy was demanded and when the works were completed.

Do you have a mortgage on the property?

[1penny]

I believe that they went through the correct section 20 consultation process.

Yes we have a mortgage and are slightly behind too due to the cost of living.

The monthly payment went up by £700 pm due to the interest rate rises so it has been a real struggle.

We are in communication with them and have a plan to get back on track.

I am at work until late so can't dig out any additional paperwork.

claim form 150224.pdf

I am at work until late so can't dig out any additional paperwork.

 

.

 

[AndyOrch]

Upload unavailable ?

[1penny]

 

Hopefully this file works.

Claim form 150224.pdf

[lolerz]

Ah, the mortgage explains why they're trying their luck in court.

I imagine the Freeholder's final move (remember, it's them suing you not the managing agent) is to apply for the Mortgage company to pay the arrears as part of the S146 process. It pretty much guarantees them their money.

Mortgage companies do this because they don't want to lose their security on their loan with you. This will get added to your mortgage but do be aware that some mortgage companies may look to start repossession proceedings of their own if they have to do this. If this happens, come back and we'll help you stop that as well.

For now though, we'll fight this. Hopefully you kept all the correspondence as it's important that funds are used correctly in Service Charges. It would be interesting to see if any shortfalls/surpluses were added to your Service Charge account throughout the years.

FWIW It's going to be difficult to argue the Service Charge isn't due and payable because I imagine it states that they are explicitly in your lease. A lot of people assume this means there's no defence though.  We're going to have to go at the angle that the Service Charge demanded wasn't reasonable and the fact that you've tried to engage in good faith to clear the arrears and they haven't accepted it. We can't formulate a defence until we see the documents though!

For now though, can you complete the template listed in this thread?

 

Edited February 19 by lolerz
missed out some

[AndyOrch]

You have 19 days (Mon4th March 16.00pm) to Acknowledge Service from and including the issue date 15th Feb and which time you must decide if you want to defend the claim in full or make a partial admittance,

[lolerz]

Interesting that they've waited 5 years to try and claim as much interest as possible!

[1penny]

@Andyorch Ok understood, many thanks for clarifying the timelines

@lolerz I believe that there have been end of year balancing charges one which was around £800.

None of the residents are happy with the managing agents and we feel that they are ripping us off. 

[lolerz]

If you feel like you've been ripped off you'd have to argue that through a First Tier Tribunal.

Obviously, that doesn't help now that it's going through the county court for non-payment.

[AndyOrch]

You may find the following invaluable particularly the section on Pre Action Protocol given that they have now litigated.

https://www.lease-advice.org/article/seeking-information-on-service-charges-remedies-at-leaseholders-disposal/

 

[1penny]

Which Court have you received the claim from ? MCOL Northampton 

Name of the Claimant ?  Winderbray Ltd

How many defendant's  joint or self ? Joint

Date of issue – 15th Feb 2024

Particulars of Claim

What is the claim for – the reason they have issued the claim? 

1. The defendants owe the claimants the sum of £12,630 for arrears of service charge part of which has been outstanding and demanded since 1st April 2019 pursuant to a lease dated 4th September 1998.

2.The claimants claim interest under section 69 of the County Courts Act 1984 at the rate of 8% per annum from 1st April 2019 to 14th February 2024 on the said sum the interest being £1,009

and also interest at the same rate up to the date of judgement or earlier payment at a daily rate of £2.77.

The claimant claims interest under section 69 of the County Courts Act 1984 at the rate of 8% a year from 01/04/2019 to 14/02/2024 on £13,632

and also interest at the same rate up to the date of judgement or earlier payment at a daily rate of £2.77

 

What is the total value of the claim? £14,414

Have you received prior notice of a claim being issued pursuant to paragraph 3 of the PAPDC (Pre Action Protocol) ? Only e-mails threatening forms of legal action and nothing headed Letter before Action
 

Have you changed your address since the time at which the debt referred to in the claim was allegedly incurred? No

Is the claim for - a Bank Account (Overdraft) or credit card or loan or catalogue or mobile phone account? No

Is the debt showing on your credit reference files (Experian/Equifax /Etc...) ? No

Has the claim been issued by the original creditor or was the account assigned and it is the Debt purchaser who has issued the claim. By the Freeholder

Why did you cease payments ? Service charge demands were excessive due to works carried out on the building. We paid what we could as affected by yhe pandemic and cost of living crisis

What was the date of your last payment? End of Jam 2024

Was there a dispute with the original creditor that remains unresolved? No

Did you communicate any financial problems to the original creditor and make any attempt to enter into a debt management plan? We explained our situation to both the managing agent and solicitors and tried to negotiate an affordable payment plan which was refused, so continued to psy what we could.

Please let me know what other documents are required. It may take several days and some documents might be at my mothers house which is a 220 mile round journey.

Appreciate everyone's responses today.

Will try to get a good nights sleep as have felt terribly anxious today and work is very busy too.

 

Thanks

 

1Penny

[AndyOrch]

Not really applicable to your claim hence the reason I asked for a copy of the claim form just for the particulars.

[1penny]

Ok thats what I thought actually.

Let me know any other docs required and I will try to source them in the next few days.

[lolerz]

A copy of an up to date statement of account to see how the extra charges were raised would be great.

It'd also be great to know how much you were paying per month and how much your annual Service Charge is normally to ensure what you were paying covered your normal Service Charge