County Court claim interest claimed on unpaid service charge/dispute

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    #16
    Under the Small Claims Court ( which operates under the County Court), there is provision for claiming interest on the debt or the arrears owing, calculated from the due date. This interest is a provision under the Court rules and may not be mentioned under the lease.

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      #17
      Stacker: This is yet another thread where you have failed to provide important details and instead keep bringing up different issues with each reply that you post (most of which have already been discussed in previous threads).
      It again seems like you have already made up your mind and don't want to be listen to anything that disagrees with your opinion.

      From what I have seen, I think that you would be wise to provide the details that people ask for - and then seriously consider what is said.


      Originally posted by Stacker View Post
      The claimant landlord has made a service charge demand dated 31st August 2020, the demand is very brief without any details of those charges and quarterly payment of service charges are not expressly provided for.
      Service charge demands don't have to provide anything more than brief details of the charges. In fact, I don't think that they need to contain any details about what the charges are specifically for at all (although they do need to include some other details, such as the freeholders name and address).
      Quarterly charges don't have to be "expressly provided for". Freeholders cannot legally demand service charges earlier than is stated in the lease, but they can send out demands later than the date(s) stated because this will almost certainly be considered to be more advantageous to the leaseholder (unless, or course, the wording in the lease is extremely restrictive and obligates the freeholder to make demands on a specific date, or dates).


      Originally posted by Stacker View Post
      The claimant landlord is obligated under the lease to insure the building in accordance with the provisions in the lease, by paragraph 3 the lease makes clear provision paying yearly during the said term First the Annual Rent in advance on the twenty first day of June in every year free of all deductions whatsoever after the expenditure has been incurred by the landlord.
      As I said previously, the clause that you are quoting/paraphrasing here appears to be an obligation on the leaseholder. It does not seem to be a clause that the freeholder is required to stick to. In fact, what you have quoted here is something that the freeholder cannot do - it is impossible to demand payment the annual service charges in advance and after it has been incurred by the landlord.


      Originally posted by Stacker View Post
      There is no requirement for me to pay any third party or insurance broker.
      So don't pay anything to third parties, send all payments direct to the freeholder.
      This has been said in other threads you have started, and is an extremely simple solution.


      Originally posted by Stacker View Post
      That the claimant landlord is obligated to insure the communal parts of the building and indeed the building as a whole
      I don't remember you posting anything at all that suggest that they haven't done this.

      Originally posted by Stacker View Post
      The claim for interest has not been adjudicated as these proceedings are in process and no award of interest under the County Court Act has been made.
      Recovery of interest on service charges. There is no mechanism in the lease for charging interest on unpaid service charges or for there to be a profit on a service charge, the service charge clauses only refer to the recovery of costs relating to monies actually expended on the maintenance repair and general upkeep of the building.
      If there is nothing at all mentioned in the lease about interest being payable on late payments, don't pay any unless you are ordered to by a court. It really is that simple.
      If there are any service charge demands that you haven't paid though, and you continue to not pay them, it is likely that you will end up facing a county court claim, and you may then be ordered to pay interest (potentially at 8% APR).
      Based on what you have posted so far, I suspect that you may well lose the bulk of your arguments if you do have unpaid demands and end up in court. You seem to be arguing from a misguided sense of principle.

      Comment


        #18
        Macromia the lease requires the Insurance Rent to be paid on the 21st June without deduction whatsoever and a demand for the full proportion paid within 21 days on the landlord expending same.....the service charge has been demanded 35 days later and they are asking for the service charge insurance rent to be paid in quarterly payments so that they can pay insurance in October 30th, they should be following the lease so I have no liability for any insurance service charge monies until the landlord has expended the monies in June and not on some made up date in October.

        Comment


          #19
          Originally posted by Stacker View Post
          Macromia the lease requires the Insurance Rent to be paid on the 21st June without deduction whatsoever and a demand for the full proportion paid within 21 days on the landlord expending same...
          ...
          so I have no liability for any insurance service charge monies until the landlord has expended the monies in June and not on some made up date in October.
          Again, you are confusing the obligations that leaseholders have under the terms of the lease with the obligations that the freeholder has.

          Your lease requires leaseholders to pay the cost of the buildings insurance, without any deductions, by 21st June (and the bit you have now added about "the full proportion" sounds like an obligation for leaseholders to pay any additional amounts that are required within 21 days of a demand being sent for payment of any other expenditure that the landlord has paid out.

          However, current legislation means that no demands for service charges (or ground rent) are payable for residential properties until they have been properly demanded with specific information included on/with the demands.

          I sincerely doubt that there is anything at all in your lease that would mean that you have no liability for the cost of insurance if it is demanded after 21st June.

          You really should tread carefully here, as it sounds likely that you are going to end up paying not only the amounts demanded, but potentially also court fees and court awarded interest.

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