Some Landlords Freeholders and Agents aggressively target these fees to increase income with direct charges or via a Debt Collection Agency or standard Solicitor’s letter. They are also neccesarily sent where Leasholders don’t pay or failed to provide, sometimes intentionally, an address if they don’t live at the property.
Rule 1: Check that the invoice is in accordance with the lease in terms of timing and amount.
Rule 2: It comes with the correct statutory Information , Section 166 CLRA 2002 for Groundr Rent, the correct Summary of Rights for Service Charge or Admin Charges ( which these fees are) and the Landlord’s name and actual address in England & Wales
http://www.legislation.gov.uk/ukpga/2002/15/section/166
http://www.legislation.gov.uk/uksi/2...ulation/3/made
http://www.legislation.gov.uk/uksi/2.../contents/made
http://www.legislation.gov.uk/ukpga/1987/31/section/47
.
Otherwise as in each case the amount can be withheld
Rule 3: At this stage, these charges are only be due if the lease allows for them to be charged and either check your lease or write and ask “under what section(s) of the lease are these charges due”
Lease wordings do vary so each case has to be treated on its own merit but in most case the wording has to be quite broad to allow for these to be recovered.
When presented with a demand it is important to
-respond and assert those rights to avoid legal action being taken and the time and effort of dealing with that
-where threats of contacting a mortgagee are made advise them that there is a dispute and copy your letter to them
-if there is an underlying dispute address that immediately
-ensure all comms are recorded and acknowledged
Where the reply, if you get one, is unsatisfactory, disputes can be dealt with by mediation arbitration or for the determination of a charge ( a late payment fee as a Admin charges or Service charge being due and reasonable, apply to the Leasehold Valuation Tribunal to determine it. As a broad rule it is cheaper for the Leaseholder to apply than wait for the LL to do so as it robs them of the chance to recover costs under the lease by initiating proceedings.
That said in most cases these late payment charges, and most importantly the hassle, are avoidable, like speeding fines if you don’t speed you don’t get fined.
Forget the current lazy thinking about bills and protect yourself
-diarise the due dates of bills and chase when not received
If you pay by DD or SO make sure its taken
Check any invoices or statements as leases are complex, and assuming its all covered is reckless as
-there are often more than one party involved eg a Landlord and an Agent acting for the Residents Man Co
-charges are not lumped into one as no matter how much we think they should be, the lease, drafted by the Freeholder, not the poor Agent, who like you, is stuck with the lease they sold, and they can set out that extra charges may be made over and above an SO/DD e.g. Ground rent Insurance rents, one off levies and year end deficit charges.
Rule 4 Don’t let it go, solve it. It rarely goes away and ends up being a problem when you come to need something!
Rule 1: Check that the invoice is in accordance with the lease in terms of timing and amount.
Rule 2: It comes with the correct statutory Information , Section 166 CLRA 2002 for Groundr Rent, the correct Summary of Rights for Service Charge or Admin Charges ( which these fees are) and the Landlord’s name and actual address in England & Wales
http://www.legislation.gov.uk/ukpga/2002/15/section/166
http://www.legislation.gov.uk/uksi/2...ulation/3/made
http://www.legislation.gov.uk/uksi/2.../contents/made
http://www.legislation.gov.uk/ukpga/1987/31/section/47
.
Otherwise as in each case the amount can be withheld
Rule 3: At this stage, these charges are only be due if the lease allows for them to be charged and either check your lease or write and ask “under what section(s) of the lease are these charges due”
Lease wordings do vary so each case has to be treated on its own merit but in most case the wording has to be quite broad to allow for these to be recovered.
When presented with a demand it is important to
-respond and assert those rights to avoid legal action being taken and the time and effort of dealing with that
-where threats of contacting a mortgagee are made advise them that there is a dispute and copy your letter to them
-if there is an underlying dispute address that immediately
-ensure all comms are recorded and acknowledged
Where the reply, if you get one, is unsatisfactory, disputes can be dealt with by mediation arbitration or for the determination of a charge ( a late payment fee as a Admin charges or Service charge being due and reasonable, apply to the Leasehold Valuation Tribunal to determine it. As a broad rule it is cheaper for the Leaseholder to apply than wait for the LL to do so as it robs them of the chance to recover costs under the lease by initiating proceedings.
That said in most cases these late payment charges, and most importantly the hassle, are avoidable, like speeding fines if you don’t speed you don’t get fined.
Forget the current lazy thinking about bills and protect yourself
-diarise the due dates of bills and chase when not received
If you pay by DD or SO make sure its taken
Check any invoices or statements as leases are complex, and assuming its all covered is reckless as
-there are often more than one party involved eg a Landlord and an Agent acting for the Residents Man Co
-charges are not lumped into one as no matter how much we think they should be, the lease, drafted by the Freeholder, not the poor Agent, who like you, is stuck with the lease they sold, and they can set out that extra charges may be made over and above an SO/DD e.g. Ground rent Insurance rents, one off levies and year end deficit charges.
Rule 4 Don’t let it go, solve it. It rarely goes away and ends up being a problem when you come to need something!
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