fees allowed for service of a s166 notice

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    fees allowed for service of a s166 notice

    Leaseholders who, for example, refuse to set up a Bank Standing Order Mandate for payment of routine ground rent can now be charged an admin fee for each s166 notice
    Controversial freeholder Israel Moskovitz has won the right to charge leaseholders £30 admin fees plus VAT to send out his ground rent demands.

    Many of the older leases used to include a term which stated ground rent is due whether demanded or not. This was exploited by some unscrupulous managing agents to omit sending ground rent demands to deliberately put leaseholders in arrears of ground rent payment.
    Then a solicitor working for the managing agent would send a extortionate bill for recovery of ground rent arrears + hefty legal costs.

    The s166 is a requirement to issue a "ground rent notice" to ensure that all ground rent payments are demanded and for stopping the exploitation of leaseholders.



      The liability was formerly on the lessee to pay, there was no exploitation on behalf of Managing Agents by not sending out a demand; as you rightly say the ground rent was due whether or not formally demanded. I agree that some bandits did charge excessive fees for recovery fees. If lessees agree to pay ground rent by standing order, which mostly lessees will, the paper-chase is avoided


        Some large well known freeholders refuse to supply their bank details so it is not possible to pay by standing order


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