Excessive ground rent

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Excessive ground rent

    Hi

    I own a leasehold flat and the freehold of the building has recently been sold to a company called 'Urban point property management' who are now sending me a snotty letter demanding £100 for ground rent.

    Can they do this? I never paid ground rent before.

    By the tone of their letter they seem more akin to one of those companies who lurk on the boundaries of the law and operate wheel clamping.

    #2
    Tra la la..

    When you purchased the flat you would of agreed to a contract ('The Lease'), this Lease points out obligations upon you and the freeholder, nearly all leases have a provision requiring you to pay Ground Rent, it may say phrases such as without notice and on dem,and, etc, some of these clauses have been superceded by S166 of The CALRA Act 2002 > http://www.legislation.gov.uk/ukpga/2002/15/section/166 which requires a specific format, BUT if that is complied with and the lease says £100 GR then you must pay it, if youve never paid its quite possible for 6 years worth of demands to be sent and you'll owe £600.

    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


      #3
      Originally posted by skymaster View Post
      By the tone of their letter they seem more akin to one of those companies who lurk on the boundaries of the law and operate wheel clamping.
      Why assume that? if the lease obligates you to pay ground rent, accept that your good fortune lasted that long.

      If you check the invoice they may not be the owners simply the agent.
      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
        I spoke to the previous owner of the freehold and asked him about this. He said he never bothered to collect the £100 from each flat. He has since sold it on.

        My main concern is that these people don't try to increase it. £100 is OK, but would i be right to assume that if the lease says £100 then an increase isn't possible?

        Comment


          #5
          Originally posted by leaseholdanswers View Post
          Why assume that? if the lease obligates you to pay ground rent, accept that your good fortune lasted that long.

          If you check the invoice they may not be the owners simply the agent.
          Ill show you a copy of the letter if you like, how does £70 + VAT in charges sound to you for late payment?

          Comment


            #6
            Originally posted by skymaster View Post
            Ill show you a copy of the letter if you like, how does £70 + VAT in charges sound to you for late payment?
            The £70 is like a speeding ticket it's entirely avoidable as long you observe the speed limit and in this case pay when invoiced.

            To be frank it has had the desired effect; someone who has not paid it before, might have just ignored it, but you quite sensibly thought to react and found out that rent is due, and with andydd's post know how it should be billed to be enforceable. If you have not received a correct bill or a S166 notice by all means have a good shout at them!

            As to increases then that depend entirely on the lease wording they usually come in two forms increases between a 15 and 33 year cycle either to a fixed amount or a formula.

            have a look at your purchase file as there should be a copy of the lease with your solicitors report, or got to HM land registry and you can buy and down load it from there. The agent is unlikely to have a copy and is working from a master.
            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


              #7
              Originally posted by skymaster View Post
              I spoke to the previous owner of the freehold and asked him about this. He said he never bothered to collect the £100 from each flat. He has since sold it on.

              My main concern is that these people don't try to increase it. £100 is OK, but would i be right to assume that if the lease says £100 then an increase isn't possible?
              Well..How long has the current freeholder owned it ?. Im not sure whether he can try to collect old rents, the fact he's asked for £100 suggests he doesnt intend to.

              Nope..he can only charge what the lease says, occasionally they have a mechanism for increases, but often not.

              As for admin/late charges again this depends on the lease, some allow such charges but many do not.

              Things to note: GET A COPY OF YOUR LEASE, youll need it and I notice another new thread on here all about how.

              Check S166 of CALRA 2002, does your rent demand comply ?. If not, then you dont have to pay.

              Have you had a demand for the admin charge/late payment ?. Again if no valid GR demand then you dont have to pay and it has to be accompanierd by a valid Admin Charges - Summary Of Rights notice...but it sounds at this stage they are just 'mentioning' it.

              It may well be that everything is above board and you owe £100, Ground rent is not something to mess with, you could in theory lose your house over a few quid.

              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


                #8
                Buy a copy of your lease from Land Registry cost about 24 pds. The lease document will show date when the lease commenced and what annual ground rent is payable and when the ground rent will be increased ( normally double up every 25 or 33 years).
                A lease is only a long term rental contract and you can be at risk of losing your flat through forfeiture of your lease if griound rent arrears over 350 pds arise.

                Comment


                  #9
                  Also worth checking..the freehold when sold should of been offered to you first assuming you were there at the time.
                  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

                  Latest Activity

                  Collapse

                  • Variation of lease
                    by scampicat
                    I own a flat with a lease of 125 years starting from 2012. The ground rent is at present £150 pa, but increases as follows every ten years: £225... .£337.50.... 506.25.... 759.38.... 1139.06.... 1708.59.... 2562.89 ....3844.34. There are no more increases after eighty years. I am considering a variation...
                    25-02-2020, 08:57 AM
                  • Reply to Variation of lease
                    by sgclacy
                    A ground rent of £150 per annum increasing by 50% every 10 years until it reaches £3,844.33 with 2 years to go before it makes its first doubling would cost around £7,600 plus 0.33% of the value of the flat to have a statutory lease extension

                    One of the difficulties in proposing any...
                    13-08-2020, 01:08 AM
                  • FH forfeits and sells before 6 months window for relief?
                    by Loque
                    999yr Long lease commercial, lessee in breach, S146 served, S146 expires without being complied with, FH re-enters and changes locks.

                    Now... LH can go to court to claim relief from forfeiture for the remediable breach, usually within 6 months or so. BUT lets say once FH has re-entered he...
                    12-08-2020, 13:26 PM
                  • Reply to FH forfeits and sells before 6 months window for relief?
                    by sgclacy
                    Once the Land Registry have closed the title and a new lease granted there is no redress for the lessee seeking relief from forfeiture

                    The land registry will write to any party shown in the charges register and the tenant before closing the title - therefore illustrating the need to make...
                    13-08-2020, 00:03 AM
                  • Reply to RTM - Admin Fees Charged by Freeholder
                    by Gordon999
                    Its in section 98 of Commonhold &Leasehold Reform Act 2002.

                    Where a person who is—

                    (a)landlord under a long lease of the whole or any part of the premises, or

                    (b)party to such a lease otherwise than as landlord or tenant,

                    has functions in relation...
                    12-08-2020, 22:27 PM
                  • RTM - Admin Fees Charged by Freeholder
                    by chris1544
                    We have RTM in place for our two flat building. Recently the other leaseholder put in a request to the RTM company to install an air vent. I duly wrote to the freeholder, notifying them of our intention to grant approval for the works, giving them the statutory 30 days notice.

                    They have...
                    12-08-2020, 11:04 AM
                  • Reply to RTM - Admin Fees Charged by Freeholder
                    by Lorimer
                    There isn't much case law on this but even when an RTM is in place and it is the RTM that is responsible for dealing with consents, I believe the freeholder CAN charge a reasonable admin fee simply for the freeholder's time in reviewing the consent application. This is because the RTM company cannot...
                    12-08-2020, 20:33 PM
                  • Reply to Late ground rent payment charge & legal fees no warnings
                    by Stew
                    sounds like a major win
                    12-08-2020, 20:22 PM
                  • Late ground rent payment charge & legal fees no warnings
                    by KingstonBee
                    Wonder if you can help... This week I have received a Court Claim form pack with what seems to include a ‘particulars of claim’ and ‘lease’ for ‘outstanding arrears of Ground rent and insurance’.

                    Now this is a huge shock as I’ve not received any letters at all, no emails or phone...
                    10-06-2020, 20:13 PM
                  • Reply to Can I let this freehold indefinately ?
                    by ChrisDennison
                    Well but who’s to judge that intention? If I as the freeholder only want women, kids and one armed pirates in my block of flats and therefore put a restriction of use to that extent in the lease isn’t that my pretty unambiguous intention?



                    Well put. I have a property with...
                    12-08-2020, 19:14 PM
                  Working...
                  X