Freeholder not paying service charge

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    Freeholder not paying service charge

    I live in a small block of 4 flats and we recently (June 2020) took over the Right to Manage from the freeholder, who had previously mismanaged, eg we hadn't been presented with a service account ever since we bought one of the flats 7 years ago. The freeholder still owns one of the flats and initially expressed his keenness to absolve his management responsibilities and just pay his service charges. Since the RTM inception in June 2020 he has not paid any of the service charge requests and reminders that have been sent to him on a monthly basis. He has not responded to any messages sent to him via post, email or phone. As the RTM company started from a position of zero finance we can't afford to incur large legal costs at the moment. Are there any other options available, eg small claims.
    Does anybody have a ball park figure for the compulsory purchase of the freehold? The lease is for 999 years with no ground rent.

    #2
    The RTM has the legal right of managing the building under the lease including placing the annual buildings insurance cover and paying the maintenance expences for the building etc. . The service charge account should be based on the annual budget for estimated expenses for maintenance of the building and apportioned to give the service charge payable by each flat.

    If the leases state the service charge is paid up front and now overdue, the RTM can use the Small Claims Court ( under the County Court ) to claim payment of annual service charge , now in arrears.

    If no ground rent is payable by any flat, the cost of the freehold title may be nominal , say at £500 ?

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      #3
      Thank you for the reply and useful information, Gordon

      Comment


        #4
        Have you properly demanded the service charge - i think there are certain rules you have to comply with? No service charge is legally payable until the correct demands have been issued...

        What does your lease say about late payments (if at all)..administration charges (if at all) etc

        Perhaps when you took over the RTM in June 2020 - there was a lessee balance due to the freeholder...

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