Interest on overdue ground rent

[chmg]

Hi, I've recently taken over the running of a small leasehold investment company, and need some advice on non-paying lessee.

The original lease dated 1957 was extended in 2006 to 99 years, and a clause in the deed of variation allows for interest to be charged on overdue ground rents.

The lessee has failed to pay any ground rent since 2006. As the amount of the arrears has gone over the £350 threshold, I understand we could start procedures forfeiture. (I don't want to resort to this, but reminder notices have been ignored, and my letter to the mortgage company was returned "addressee gone away")

I need to know if the interest due is classed as an admin charge, so I'd need to send the official "summary of charges".

Also, can you offer any advice on tracking down the mortgager, as the one listed by Land Registry (Matlock Bank) no longer seems to exist.

Many thanks

[jeffrey]

"Matlock Bank" must be mortgagee (= lender), not mortgagor (= borower).
Try Bank of England or Companies House?

[chmg]

doh! yes, apologies, they are the lender. I checked Companies house, there is no Matlock Bank, there is a Matlock Ltd (dissolved). I Googled them, found several references to them with the same address and tel no, but phone line is disconnected. Will try Bank of England next... thanks!

[jeffrey]

1. Do HMLR entries show the dubious company's company registration number?
2. Could it be a non-UK company (e.g. IoM, CI, etc.)?
3. HMLR may be willing to disclose which solicitors acted for the company at the time of registration.

[chmg]

many thanks Jeffrey, I've tracked down a phone number & got another address, so should be able to pursue them now! (they also traded as the London Mortgage Company)

really appreciate yr help

[jeffrey]

I need to know if the interest due is classed as an admin charge, so I'd need to send the official "summary of charges".

I guess that you're here referring to s.158 of the 2002 Act and its Schedule 11 provisions.

Answer (all cross-refs. are to paragraphing of that Schedule; AC means admin. charge, and VAC means a variable AC):
A. Interest charge clause is an AC [1(1)(c)].
B. If lease defines the applicable interest rate, whether fixed there or defined by reference to a Bank base rate, it's not a VAC [1(3)(a) or (b)].
C. If it's a VAC, it's payable only to extent that it's reasonable [2].
D. In any event, all the rest of Part I of the Schedule [3 to 6] does apply whether VAC or just AC.