Long leaseholder simply ignoring service charges

[woodchip35]

I am the LL of a converted property, consisting of two flats. One leaseholder pays the service charge which includes insurance, the other has totally ignored paying, and now let out the property without LL consent.

What is the procedure to inforce payment?

[deer]

Have you sent the demand for service charges with the correct summary of rights and obligations?
If you have not your Lessee does not have to pay you anything at all.(until you send them out in the correct way)and only debts under 3 years years can be collected (I think)
Does the lease state they have to ask the landlords permission to sublet?
I'am fairly new on here,but i'am sure somebody more in the know will be along soon! Jeffrey! Leaseholdanswers! (rise and shine boys!)

[woodchip35]

Have you sent the demand for service charges with the correct summary of rights and obligations?
If you have not your Lessee does not have to pay you anything at all.(until you send them out in the correct way)and only debts under 3 years years can be collected (I think)
Does the lease state they have to ask the landlords permission to sublet?
I'am fairly new on here,but i'am sure somebody more in the know will be along soon! Jeffrey! Leaseholdanswers! (rise and shine boys!)

Yes sent in correct way

lease states ll consent required

[andydd]

Assuming that the service charges have been demanded in accordance with the lease and the law then there would normally be two routes to obtain your money.

1. If the lease allows you may send a S146 Notice to start the proceedings to forfeit the property, this can be rather long and complicated and unlikley to actually suceed, but it is often used as a scare tactic to pursuede the tenant to pay up (it will also flag up non-payment to the mortgage company).

2. Start a County court claim.

Both options may end up being referred to an LVT, the costs of which may or may not be recoverable depending on the wording of the lease.

Andy

[leaseholdanswers]

Pull out the lease of the non paying flat.

1. Locate the clause for the under letting and the para stating that if the rent or service shall be unpaid etc, and any reference to section 146.

2. Locate the title number, and go to HMLR and look at the office copies (there is an option if you don’t have the title number) and locate the flat an any mortgagee.

3. Write to them as the freeholder, with the office copy showing who you are, explaining that under the clause in 2, quoting it, that the leaseholder their borrower is in breach of the terms of the lease for non payment (list amounts), and has let the flat without consent, quoting the clause, and has not responded to any attempts to communicate.

4. You are therefore about to commence proceedings for forfeiture, however you are giving them 14 days in which to protect their interest.

In the meantime read the lease to ensure that service charges have been estimated/calculated and demanded in accordance with the lease, any accounting at the end of the accounting period normally a year but see the lease, has been done and any surplus or deficit correctly handled.

Review all invoices to ensure that they are for the correct periods and that they have been accompanied with the landlords name and address under section 47 & 48 Landlord and tenant act 1987, with the summary of rights and obligations and that ground rent invoices have a section 166 notice under CLRA 2002. This is essential before you start any proceedings either at LVT or the County Court.
Read lease-advice.org for further information.

[jeffrey]

AND ensure that service charge demands were accompanied by the information prescribed by/under s.21B of LTA 1985.