Service charge payments by cheque

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

    Service charge payments by cheque

    I am involved in a dispute with a leaseholder who is continuing to send payments by cheque dispite notice that cheques would no longer be accepted for service charges or ground rent. The lease does not specify what form payments for service charge should be made (cash, cheque, bank transfer, etc) but does give power to the landlord to make regulations.... "The Lessee must comply with all regulations made by the Landlord from time to time for the management of the Building and the Estate."

    I have accepted cheques for a few years, and even switched banks when Lloyds closed their branch in my home town in 2017. Unfortunately the last remaining bank in the town closed in April 2019 and now it is expensive for me to bank cheques, not just bank charges but the time involved in visiting a branch. I have looked into cheque imagining but this is not yet supported by HSBC for business accounts and I cannot bare to go through the process of changing banks again. I feel I have done all that is reasonable to try and accommodate this leaseholder.

    If I do not accept the cheques, and simply return them to the leaseholder, would that present difficulty for me to bring enforcement proceedings for unpaid service charges?

    #2
    There was something in a recent thread which made the point that cheques are not in fact legal tender. So can possibly be refused. Not sure you can refuse cash though (in 10 pence coins?)

    I do think however that bringing a claim for unpaid service charges on this basis is going to look a tad unreasonable.

    Comment


      #3
      Is he a seasoned citizen? It's actually in the leaseholder interest to send direct payment for service charges. It appears many freeholders prefer cheque payment to avoid a possible waiver of the right to forfeit a lease that is in breach.

      Comment


        #4
        Originally posted by TruthLedger View Post
        Is he a seasoned citizen? It's actually in the leaseholder interest to send direct payment for service charges. It appears many freeholders prefer cheque payment to avoid a possible waiver of the right to forfeit a lease that is in breach.
        She is a seasoned citizen, formidable and a retired QC....!

        Comment


          #5
          Has she mentioned why she prefers/wants to pay via cheque? Perhaps, they don't own a computer and/or know how to use one? Maybe a relative of theirs can help them setup the electronic payment.

          Comment


            #6
            She says it is more convenient and that she does not like to use telephone or internet banking. I have been posting her cheques to my nearest branch, but the 1 January cheque was lost in the post and it took 4 weeks for her to write a replacement....!

            Comment


              #7
              I've been paying in my cheques by post to First Direct for years now, never a problem. I scan cheque & paying in slip if I can be +rs+d.

              Some people, often older, only feel comfortable that way. How would you like a supplier to deal with an elderly relative? With compassion & tolerance perhaps?

              Can you offer a discount for electronic?

              Artful: 72.
              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

              Comment


                #8
                I do not think that the power to make regulations can extend to imposing conditions on how the rent or service charge is paid.

                Comment


                  #9
                  Originally posted by Lawcruncher View Post
                  I do not think that the power to make regulations can extend to imposing conditions on how the rent or service charge is paid.
                  I agree.....Im not sure there is much that can be done in this scenario....Im in the opposite scenario with my FH
                  Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

                  I do not accept any liability to you in relation to the advice given.

                  It is always recommended you seek further advice from a solicitor or legal expert.

                  Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

                  Comment


                    #10
                    My mother writes a cheque for her service charges. she can't use a computer any more, but even if she could, internet banking is beyond her.,
                    And why should she have to incur phone call costs to pay her service charges ?
                    Are you going to pay someone's phone costs because you don't want cheques ?

                    She has paid by cheque for the last 20 years. It worked 20 years ago, and so should work now.

                    Of course cheques are not legal tender, because they are NOT bank notes.
                    Neither is a sandwich with the words, £ 10 pound note written on it.
                    Cheques are an instruction to a bank, and not classed as money.

                    Your yearly accounts will show bank charges, which all the leaseholders pay for, so no problem.





                    Comment


                      #11
                      You could increase your management charge and then offer a discount to bring it back to the old charge if paid by internet transfer

                      Comment


                        #12
                        Tell her to pop into her bank and let them do the transfer.



                        Comment


                          #13
                          Do you have a post office near by? We use that method for most, they have paying in envelopes for most banks and you just include a paying in slip. Never had them go missing.
                          <a href="http://www.manchesterpropertygroup.co.uk/" target="_blank">Manchester letting agents</a>

                          Comment


                            #14
                            Originally posted by jrsteeve View Post
                            Do you have a post office near by? We use that method for most, they have paying in envelopes for most banks and you just include a paying in slip. Never had them go missing.
                            This would have been perfect, but is not offered by HSBC for the type of account I have to hold the service charge sums in.

                            Comment


                              #15
                              Originally posted by sgclacy View Post
                              You could increase your management charge and then offer a discount to bring it back to the old charge if paid by internet transfer
                              Thanks - this seems to be the most straightforward and I will give it a try.

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X