lease does not state make service charge payments monthly landlord insisting

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    lease does not state make service charge payments monthly landlord insisting

    Hi and hope you are all well...I am getting tired of the battle here...lease states pay service charge in advance however lease does not state pay monthly or quarterly and landlord making demands monthly and now I have been threatened smalls claim because I said I would pay according to lease. Sometimes I feel like giving up!!!

    #2
    So how are you paying and when? And what does the lease say?

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      #3
      Underlying principle, the lease rules. Up to you but I would call his bluff.

      What can be claim for it you are paying according to lease ?

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        #4
        If the lease does not state which does it make a difference to you? i.e. if you pay a 1/4 up front it's the same as the months paid month by month isn't it, in fact you keep the money for a bit longer don't you?

        Maybe it's to keep everyone on the same schedule to allow records to be easier checked.

        I'd think there are larger battles to worry about and not get too upset about it

        All the best

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          #5
          I agree with Stew but suspect there are other grievances.

          Equally it could be said Freeholder should just accept it.

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            #6
            Could you post the wording on the lease, and how often are you paying and when?

            I believe if they issue in the cc you can request this be dealt with using ADR, so a property tribunal in accordance with the courts overriding objectives.

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              #7
              Originally posted by Stacker View Post
              ...I am getting tired of the battle here...lease states pay service charge in advance however lease does not state pay monthly or quarterly and landlord making demands monthly and now I have been threatened smalls claim because I said I would pay according to lease.
              What your lease doesn't say might not be the important consideration here.

              What is more likely to be important is what the lease does say - and, unless you tell us what it says (quoted the exact wording used), we can't comment on whether or not you are trying to fight a battle that you will win, or one that is likely to end up as a costly loss.
              For example, if the lease simply states that "services charges are payable in advance, on demand", this could pretty much give the freeholder/managing agent the freedom to demand payment pretty much whenever they want.


              Is this really a battle worth fighting, and (realistically) what do you think you are likely to gain from fighting it?

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                #8
                The lease is a legal contract and the landlord has breached it 3 times this year so its part of my case to strengthen my application to appoint a manager they are not following the lease...making it up basically....

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                  #9
                  Usually the service charge payment for whole year is paid in advance and due date is stated in the lease. For some blocks where the managing agent is appointed by the leaseholders , the agent will allow monthly payment by standing order from your bank account just like payments for council tax.

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                    #10
                    lease states...Service charges...1. total expenditure incurred by the Lessor in providing the services is hereinafter referred to as the Service Charge....the lessee proportion of service charge is in reference to 1.20 ( meaning %)

                    3. The lessee shall pay the Lessor or managing agent as the case may be the Lessee's proportion of (a) in advance in each year the amount which shall be reasonable estimated by the managing agents or the Lessor as the Lessor as the case may be of the Service Charge for the year (b) any further sums as shall be required by way of an interim charge during the course of the year (c) the lessee will pay all such sums notified within twenty one days of demand

                    6. If insufficient to meet the lessee share of expenditure the Lessee shall forthwith upon the Lessor making a demand at any time after the end of such period pay the shortfall in respect of the period within twenty one days of demand

                    too great then surplus carried forward by the Lessor and credited to the account of the lessees in computing the Service charges in succeeding accounting periods in the Lessor's discretion shall be transferred to the sinking fund.

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                      #11
                      I would sincerely recommend that you forget about arguing this particular point as I cannot see any way that doing so could possibly help you - and it may even work against you if you were to bring this up in a tribunal because it would (quite rightly in my opinion) likely be seen as petty.

                      If you are provided with an estimate of the service charges before the beginning of a service charge year, there is nothing to stop you paying the full estimated amount at the beginning of the year. If you do this, make sure that you keep records, including proof of posting if you send a cheque and copies of any responses that you get.
                      If the managing agents/freeholder refuse to accept payment, and you have evidence of this, they will find it very difficult to later argue that you haven't paid your service charges at any point in the future.
                      However, the sections of the lease that you have quoted (assuming that they are actual quotes) don't require payments to be either demanded, or paid, at the beginning of each service charge year. The requirements are that they are paid "In advance in each year" (3a) and "within twenty one days of demand" (3c).
                      The lease also clearly allows for the managing agents/freeholder to demand payments pretty much whenever they want (in the form of interim charges).

                      Monthly demands will be considered to be advantageous to leaseholders on the basis that it will be considered easier for most people to budget for, and pay, monthly.

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                        #12
                        Thank you Macromia the problem is they have given two heads of expenditure insurance and an accountants fee then demanded monies with no explanation for what they are for?

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                          #13
                          Macromia that is the wording in the lease

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                            #14
                            Originally posted by Stacker View Post
                            Thank you Macromia the problem is they have given two heads of expenditure insurance and an accountants fee then demanded monies with no explanation for what they are for?
                            Nothing that you have quoted requires the freeholder to explain what service charge funds are for.

                            The RICS code for managing agents says that 'best practice' is to provide a summary of estimated expenditure in advance, and (if one is not provided anyway) you have a legal right to demand a summary of actual expenditure after the end of the service charge year.

                            Saying that charges will be going towards 'insurance and an acountant's fee' seems to fulfil the minimum requirements.



                            What is being demanded, and when? And what have you actually been paying?
                            If you have been refusing to make payments you might actually find that they can take you to court over this, and win.

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                              #15
                              Last year the only service charge demanded was for the insurance, now they send a demand for insurance and a cost towards the accountants fee with no other heads of expenditure or explanation no asking for £800 with no explanation for what this for they say its for the reserve however there is no word reserve or reserves in the lease. Its unreasonable

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