£36 ground rent collection charge

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    £36 ground rent collection charge

    Interesting FTT ruling on what's a reasonable charge for collecting ground rent could leave the lessee with a bill for thousands legal costs. Ouch.

    The decision seems to be based on the wording of the lease which allowed the costs of collecting rents to be recovered from the leaseholders.
    Interesting that the cost of issuing demands was included as part of the collection costs.
    The evidence suggests that £36 is a reasonable charge for 15 minutes work, so £144 per hour is considered to be reasonable.
    I very much doubt that it takes 15 minutes to issue a demand with the required notice.
    Lets hope that an appeal is lodged and a barrister represents the leaseholders otherwise the £36 will quickly become £48 and then £60.


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