Interest charged on service charges

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    #16
    Why pay anything (e.g. interest) which the lease does not require you to pay?
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

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      #17
      Originally posted by funkster View Post
      Thanks. I am sure my lease is similar to yours, as I can find no reference at all to interest charges, or to paying in advance. I have stated this many times to the Managing Agent, but have just been ignored, basically.

      In fact, I don't mind at all paying relatively small amounts in interest charges to the Freeholder if it gets him off our back and we can sort out acquiring the freehold without too many problems, but the huge amount I am now being billed for is another matter.

      I am actually wondering whether it might be possible to pay under protest and then somehow revisit the matter after the freehold purchase has gone through.
      My landlord has fallen foul of the advance part many times, he has threatened S146 many times which has resulting in legal costs, (and interest) all these have been before the amount is actually due, therefore invalid, so Im applying to the LVT next week to recoup them.

      Paying an amount doesnt mean you agreed to it, this is clear in law and you can ask an LVT to decide on it later.

      Andy
      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


        #18
        Originally posted by jeffrey View Post
        Why pay anything (e.g. interest) which the lease does not require you to pay?
        Well, as I explained earlier, my main interest is acquiring the freehold as easily as possible, not just for myself but for the other leaseholders, who are not affected by the matter of interest charges. i am advised not to get into service charge disputes at the moment. As is common knowledge, acquiring the lease can me a lod and tortuous process.

        Thus, the cause of my dilemma about what to do, since I also don't feel comfortable about paying an amount I don't think I should be paying.

        Comment

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