Belated Extra Service Charge

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    #16
    Originally posted by flyingfreehold View Post
    I dont think Macro is correct; once the lease is assigned, the assignee becomes liable for the debts to the landlord of the assignor
    The Landlord and Tenant (Covenant) Act 1995, Section 23, part (1), specifically states that the assignee doesn't have any liability for any time prior to assignment.
    However, part (3) of that section allows 'rights of re-entry' to be enforced for breaches that occurred before any assignment.

    This means that it is the person who owned the lease at the time of a breach (including the accumulation of arrears) who would need to be pursued for judgement that a breach has occurred - but if judgement is received, forfeiture proceedings can then be pursued against the new owner.


    In the situation described in this thread though there were no arrears at the time the lease was transferred, and it is the new owner of the lease who has legal responsibility for paying the late service charge demand (or fighting it), because they owned the lease when payment became due.
    Since the OP accepts that the additional charge refers to a period when they owned the lease, they can choose to accept moral responsibility for paying - which they apparently did despite not having any legal responsibility for the debt.

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      #17
      During the buying selling process. The buyer's solicitor would have asked about details of service charge. If they said it is up-to-date, then some fault lies with the Freeholder.

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