Ground Rent Demand Letter

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    Ground Rent Demand Letter

    Hi, im hoping someone can give e some advice on my options:

    I recently received a final demand letter for Ground Rent for a property I purchased in Dec 19.

    The Ground rent is £2 per year, yet I have a final demand for £636 with a breakdown as follows:

    10th feb 20- referal fee of £120
    23nov 20 - notice of transfer £125
    23nov 20 - notice of charge £125
    26feb 21 - late payment fee £60
    29 sept 19 - ground rent £2 (period of arrears 29sept 19 - 28sept 20)
    29 sept 20 - ground rent £2 (period of arrears 29sept 20 - 29sept 21)
    PDC instruction fee £192
    PDC additional costs £10
    TOTAL £636

    I didn't purchase the property until Dec 19, and have never received any ground rent invoices. After the anniversary of purchasing the property and not having received a Ground Rent Invoice I posted a cheque for £2 in Dec 20 to the lanlord ground rent address highlighted on Land Registry but this was never cashed. (no proof of postage)

    After recently receiving a £636 Ground Rent Demand Letter from debt collection company, I wrote to the Landlord saying I had received no previous Ground Rent Invoices, and that I had sent them a cheque for £2 in Dec 20 which was not cashed. I also re-issued 2 x cheques for £2. The Landlord returned the cheques saying i need to deal with debt collection agency.

    I then wrote to the debt collection company saying that i didn't purchase the property until Dec 19 and informing them that I had previously sent a cheque for £2 in dec 20, however they have replied with a letter saying that although I took ownership in Dec 19, that they collect Ground Rent from Sept and that the rent is charged to the property and not how long the individual has owned it. They say it was my solicitors duty to ensure rent was paid up to date before completion otherwise debt comes liable to new owner.

    Having received this new letter saying I still owe £636, I rang them. They have informed me that I still owe £636 and if I dont pay they will instruct my mortgage company to pay (he said they will just pay it and then add the cost/charge property/mortgage).

    Surely, this cant be legal, and there must be someway of challenging this?????? any advice would be appreciated







    #2
    In your position I would go back to your conveyancing solicitor for advice.

    It is fairly common for mortgage companies to pay arrears and add to the mortgage. They are looking after their interest.

    Comment


      #3
      Did you solicitor checked the ground rent payment history? And did he or you send a notice to freeholder with your correspondence address?

      Comment


        #4
        Does the lease contain a clause requiring payment of the landlord's costs for anything? If so, please quote in full.

        Does the lease contain a clause requiring notice to be given on assignment or charging the property? If so, please quote in full.

        Comment


          #5
          I assume the lease may have been granted at the beginning of the last century and would expect the notice fee to be a fixed fee of far less than 50p

          You may in the first instance have to pay the costs and then make an application to the FTT to deal with the administration charges. This will be by paper review and should not be seen as a daunting task

          Comment


            #6
            Well firstly..most of those charges are NOT ground rent, they are Administration fees which may or may not be payable depending on the lease and if they were demanded in accordance with the law....but as others have said most of the fees should be dealt with during conveyancer process.

            Also Ground Rent is NOT payable at all unless demanded as per here > https://www.lease-advice.org/files/2...ce_England.pdf
            Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

            I do not accept any liability to you in relation to the advice given.

            It is always recommended you seek further advice from a solicitor or legal expert.

            Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

            Comment


              #7
              Thank you all for your replies. I will contact the conveyancer i used to see if he checked ground rent history etc and ask what lease says.. I will post his response once received.

              Many thanks

              Comment


                #8
                Originally posted by Bobbybigears View Post
                Thank you all for your replies. I will contact the conveyancer i used to see if he checked ground rent history etc and ask what lease says.. I will post his response once received.

                Many thanks
                Please note that we need the exact wording of the relevant lease clauses.

                Comment


                  #9
                  Duplicate post

                  Comment


                    #10
                    Hi lawcrunher. Still not had a reply back from conveyancer I used to purchase. Not sure which parts of lease i am looking for.

                    I just looked at some of the docs i got when i purchased, and there is a Epitome of Title doc relating to property with all the old titles included, but dont know what i looking for. Do you have a email addresd i can send you.

                    Thanks

                    Comment


                      #11
                      I found a copy of orginal 1908 lease, but it wont let me upload for some reason.

                      Comment


                        #12
                        Originally posted by Bobbybigears View Post
                        I found a copy of orginal 1908 lease, but it wont let me upload for some reason.
                        Can you scan it and attach it to an email?

                        Comment


                          #13
                          Lawcruncher, attach to email? (Will need your email address) Or upload to thread?

                          Comment


                            #14
                            See private message.

                            Comment


                              #15
                              £125 is pretty expensive for each of notice of transfer and notice of mortgage. Your freeholder is being greedy; people like him are what gives the trade a bad name, most of these costs are a try-on, which is regrettable! However if your conveyancer failed to serve notice on the landlord that puts you on the backfoot somewhat. I don't think your mortgage lenders will pay all of these sums claimed without either a court order or a possession order.

                              Comment

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