demand for increased ground rent in arrears??

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    demand for increased ground rent in arrears??

    Hello, hope someone can help with this!
    2 things - firstly, our property management company have just sent a demand for an increase in ground rent that has 'come to their attention' (in accordance with terms of the lease) following a review 2 years ago! They are now asking us to pay the difference to cover the past 2 years and next year, an increase of 11.4%. Throughout the past 2 years we've paid whatever ground rent they asked. So just because they've suddenly noticed their error they can they then demand it out the blue like this?
    Secondly I'm not sure their legal bit complies with s.166 anyway, since the due date they've stated was the day they sent the letter, ie 2 days ago... And the rent period states "19 October 2010 to" - ie the day they sent the letter rather than the start date the rent should cover, and with no end date.
    To me both these points just reflect a complete lack of professionalism and I wondered whether we're obliged to pay or not, and if not, do we have to explain why?
    Thanks

    #2
    1. On what dates does the lease state that rent falls due, and is it payable 'in advance' or 'in arrears'? Please state its exact wording.
    2. Does the lease provide for ground rent increases? Please state the exact wording of the clause that indicates the mechanism applicable.
    3. So that we can assess whether the demands are compliant with s.166 of the 2002 Act, please state the exact wording [omitting private details] of the form's substantive wording- the three main paragraphs beginning:
    a. 'It requires...';
    b. 'This rent...'; and
    c. 'In accordance...'.
    4. Does the s.166 Notice incorporate the statutory "Notes for leaseholders"?
    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).

    Comment


      #3
      Originally posted by poshbug View Post
      Hello, hope someone can help with this!
      2 things - firstly, our property management company have just sent a demand for an increase in ground rent that has 'come to their attention' (in accordance with terms of the lease) following a review 2 years ago! They are now asking us to pay the difference to cover the past 2 years and next year, an increase of 11.4%. Throughout the past 2 years we've paid whatever ground rent they asked. So just because they've suddenly noticed their error they can they then demand it out the blue like this?
      Secondly I'm not sure their legal bit complies with s.166 anyway, since the due date they've stated was the day they sent the letter, ie 2 days ago... And the rent period states "19 October 2010 to" - ie the day they sent the letter rather than the start date the rent should cover, and with no end date.
      To me both these points just reflect a complete lack of professionalism and I wondered whether we're obliged to pay or not, and if not, do we have to explain why?
      Thanks
      A reply to Jeffrey's post wil answer the issue. The review clause is very important as some older leases were time limited and they miss the review.

      The only comment I would make is they are amateurs.
      Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

      Comment


        #4
        Thanks for your input. Jeffrey i have to confess perhaps because of my own naivety when i moved in 4 years ago, I'm not sure I've ever actually seen the lease. I do remember asking my solicitor a few months after moving and because of the extra charges involved i think i just left it. The flat was only built in 2003 so that's when the lease started, if that makes any difference.
        So in response to your questions,
        1. I don't know the specific wording but every other demand for rent has stated 'in advance'.
        2. Again, I don't have the exact wording - their cover letter states "in accordance with the terms of the lease, there is a ground rent review every 5 years, and the first review was on 29/09/08." So I've assumed that part is accurate.
        3. The exact wording of the form is:
        "It requires you to pay rent of £xxx on 19 October 2010. (Note 2)
        This rent is payable in respect of the period 19 October 2010 to .
        [In accordance with the terms of your lease the amount of £xxx is due on 19 October 2010.] (Note 3)"
        4. Yes it does incorporate "Notes for leaseholders"
        Does this help? How can I get hold of the lease?

        Comment


          #5
          For the Lease, try:
          a. last solicitors used, in case their file contains a copy of which they can send a copy to you [free or low-cost];
          b. mortgagee (lender), if it holds any of your deeds [but it may charge you a fee]; or
          c. HMLR- use hard copy form OC2, for which the fee is usually £12 or £24 [depends on how document is held there].
          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).

          Comment

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