Service charge payments by cheque

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    Originally posted by Flashback1966 View Post
    Tell her to pop into her bank and let them do the transfer.

    A FH cant dictate LHs to do this just to make his life easier
    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.


      Originally posted by ram View Post

      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 ?
      This is a fair point, but can also be taken further.... should I have to incur costs to post on her cheque to a bank, or incur costs of driving to a bank to enable this antiquated method of payment.

      If banks were not closing branches left right and centre then this wouldn't even be an issue, I was happy to pop into my local branch which was a 10 minute walk away from my home.


        Your management costs will include for envelopes, and stamps for A.G.M minutes / meetings/ paper / printer ink etc, so you add 61p second class stamps to banks in your accounts with all the other stamps and envelops used. Simples.
        Are people wanting a report on every stamp you used, what for, and to whom ? -- I think not.


          A discount isn't really a discount, it is a payment out from the service charge. I'd be very surprised to find any lease that allowed payments to be made to individual leaseholders from the service charge fund.

          If the lease requires electronic payment, you could probably make an administration charge for other methods, but don't forget the administration charge summary of rights.


            For it to be possible to charge leaseholders differently because of the method they use to pay their service charges, I would expect that the lease would have to allow individual costs to be apportioned differently.
            You are really talking about charging different amounts for 'management charges' based on how the payment is made.
            My lease, and I suspect many others, wouldn't allow this as all costs have to be split according to the proportions given in the leases.


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