Headlease and Service Charges

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    Headlease and Service Charges

    My 999 year lease states my Landlord should invoice me for service charges. This includes charges for water and sewage.
    My property is a lodge on a development of 80 lodges.
    There exists a Headlease between my Landlord and the Freeholder of the estate. Under the terms of this Headlease the Freeholder has the right to provide services to the Landlord. The Freeholder has decided to invoice owners directly for Service Charges against the wishes of the Landlord. We are concerned that because the Service Charges have been invoiced outside the terms of our lease if we were to pay them directly to the Freeholder we would lose our rights and lose the ability to challenge the charges at an FTT. This is an unusual situation, does anyone have any knowledge.?

    #2
    You should pay only what is required by your lease.
    If the lease doesn't contain anything that allows the freeholder to invoice you directly it will probably be better if you _don't_ pay them anything directly.
    They may need to invoice the head leaseholder who will then pass the charges on to you.

    It's not really possible to answer with any certainty though without knowing exactly what your lease says.

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      #3
      The Headlease says the Landlord should receive an invoice from the Freeholder and the sub-lease says we should pay the Landlord. Trouble is we are being subjected to threats from the Freeholder.

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        #4
        Originally posted by Jools1948 View Post
        The Headlease says the Landlord should receive an invoice from the Freeholder and the sub-lease says we should pay the Landlord. Trouble is we are being subjected to threats from the Freeholder.
        Then you have to choose whether to stand your ground and refuse to pay anything until the bills go through the head-leaseholder, or to pay the freeholder what they are demanding and risking this being deemed to represent agreement to pay the charges.
        Any arrangement that is outside of the terms of the lease may be determined to be have been paid by agreement outside of the contract terms and to therefore be considered an acceptance of the charges and remove any right to challenge them.

        If you are unwilling, or unable, to go into more detail about the circumstances it is difficult to say anything else.

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          #5
          I suggest that you refer the freeholder to the lease and pay nothing at all. Your contract is with the landlord who is entitled to raise charges, so you could be billed twice.You can safely ignore threats by the freeholder, he cannot enforce the claim,

          Do you know why the freeholder is charging directly? What is the relationship between the freeholder and the landlord?

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            #6
            The relationship is very poor. The Landlord has written telling him to stop, However some people have paid the Freeholder. He says he will stop services if he is not paid.

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              #7
              If services cease, you would need to take it up with the landlord under the terms of your lease. You are not a party to the head lease.

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