'Reasonable' ground rent collection charge?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    #16
    £96 has to be excessive for a rent of £100. The fee for rent collection should be a percentage, though one appreciates that there comes a point when the job is not worth doing. I think perhaps that the rule of thumb to determine what is reasonable should to be to ask what a landlord would be prepared to pay? No landlord is going to agree a commission of 96%. Off the top of my head I would suggest that 15% should be the maximium payable.

    My suggestion is that all the leaseholders just pay the rent (indicating clearly that the payment is for the rent) and wait and see what happens.

    I am curious to know the difference between a formal and informal extension of a lease. Do you mean followed the statutory procedure in the first case and negotiated outside statute in the other?

    Comment


      #17
      Thanks Lawcruncher, I suggested 10% plus VAT so I'm glad to see we're in a similar place on this.

      You're exactly right on the formal vs informal - the informal extensions by standard for this freeholder are extending the lease to 99 years (not by 99 years) and adding clauses about ground rent linking to RPI. Ripoff imo. Cost the same as a formal extension too.

      Comment


        #18
        Charging a percentage in your case would be unreasonable as some lessees would be paying more for exactly the same service
        You stated the lease clause as being "the fees of the Lessor’s Managing Agents for the collection of the rents of the Flats in the Building AND for the general management thereof"..
        AND is the important word as you only have to pay for both services, not one or the other.
        All you have to pay is the ground rent here and let them sue you, but as I said before the ground rent collection should be taken over by your management co for negligible extra cost, if any.
        In my opinion.

        Comment


          #19
          That is interesting. I will put this to our legal guys and see what they say.

          Comment


            #20
            Originally posted by Section20z View Post
            Charging a percentage in your case would be unreasonable as some lessees would be paying more for exactly the same service
            Rent collection fees are usually commission based. The agent charges a percentage of what he collects and if he collects nothing gets nothing. Where no follows-ups are required the same work is involved however high or low the rent.

            Originally posted by Section20z View Post
            You stated the lease clause as being "the fees of the Lessor’s Managing Agents for the collection of the rents of the Flats in the Building AND for the general management thereof"..
            AND is the important word as you only have to pay for both services, not one or the other.
            The same thought occurred to me. Whilst I would not like to predict what a judge would say, my feeling is that the two can be separated. Anyway, no harm arguing the point.

            Comment

            Latest Activity

            Collapse

            Working...
            X