resident failing to pay service charges

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

    resident failing to pay service charges

    We are a management company nd one of our owner occupiers has failed to pay their service charges despite several letters.
    what do we need to do now?? Can we take them to the small claims court??

    #2
    Originally posted by Lori View Post
    We are a management company nd one of our owner occupiers has failed to pay their service charges despite several letters.
    what do we need to do now?? Can we take them to the small claims court??
    Hand the account to Brady Soliciors - they are experts in this field and it will be no cost to you.

    Comment


      #3
      Originally posted by Lori View Post
      what do we need to do now??
      read the lease as to what you can do, could do or should do.

      If your lease ( for the flat in question ) says the
      "preparation and service of a section 146 ( forfeiture of flat ) is to be paid for by the offending leaseholder"
      then you write to the offending leaseholder and state that unless the outstanding service charges are paid within 30 days, you will apply and eventualy issue a section 146 to have their flat forfeited.

      I always add.
      "This means your flat will be taken off you, in order to pay the debt.
      You will not receive any money for your flat and that would be a court order for you to vacate your flat within 14 days of a court order.
      You will have to continue to pay your mortgage for a flat that you no longer possess and cannot live in.
      Furthermore, as our conmpany would have sold your flat and distributed the profits to all the shareholders, your mortage company no longer has the security of your flat and will require the whole of the outstanding mortgage to be paid within 30 days of you being evicted."
      And all our costs to forfeit your flat under Section 146 is payable even if we do not forfeit your flat."

      Just see how that goes first.
      But unfortunately, you have to apply to the F.T.T. to determain that a breach of the lease has occured.

      Let us know that you sent the "Service Charges - Summary of tenants' rights and obligations" sheet with the service charge demands.
      Let us know that you sent and adhered to the S20 requirements for any "major work" that would have cost the leaseholders more than £ 250 each for one job.

      R.a.M.

      Comment


        #4
        Originally posted by Milhouse View Post
        Hand the account to Brady Soliciors - they are experts in this field and it will be no cost to you.
        Is plugging Solicitors allowed ?
        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


          #5
          I'm not convinced you should be starting down the S146 route straight away, it can be quite complex although it is undoubtedly a useful tool for 'scaring' leaseholders into paying due to the threat of forfeiture, although in reality this is extremely rare.

          The more simple solution would indeed be a county court claim, this may well be transferred to the FTT (LVT). Of course though a LH has many avenues to dispute the service either in its entirety or the amount.
          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


            #6
            Hi Lori,

            Often it can be scary for taking your neighbour and your fellow leaseholder to court for non payment of service charge.

            It needs to be handled properly and it is also important getting everything right, right down to the demand being sent out correctly. A solicitor will often 'assume' that you are doing everything correct (as a managing agent should).

            I would like to suggest a better option than what Millhouse has suggested. Why not take on a Managing Agent? It can be far less than you may think? Start a tendering process, invite agents to quote and offer their services and go from there.

            Good luck.
            Information provided here does not constitute as legal advice and are my opions only, as there may be more information that are required in order to give a detailed answer. Please be cautious.

            Comment


              #7
              ManagingAgent,

              But ultimately any court action would have to be bought by the FH as the lease is between him and the LH (unless its a tripartie lease), so now we are this far employing a MA wont help, hes only there to do the day to day running/management he cant bring legal action although admittedly could be involved in the early stages of chasing the debt.
              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
                I still say read post 3 and send a letter

                A letter will cost you nothing, and may well get the ball rolling.
                All other methods will cost a lot of money at the moment.

                I see you have not been here for 3 days, also

                Comment


                  #9
                  Indeed and of course the CPR rules do require letters before action, etc.

                  Its worth having a look here > https://www.justice.gov.uk/courts/pr...action_conduct
                  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


                    #10
                    Correct and a "Must read"

                    But the letter is just to advise them what "could" happen if you have to go the FTT or court route.
                    Then if no joy, proceed as per pre-action conduct, but you have already found that they refuse to pay, even after recent letters, therefore in my mind there is no "consider a form of Alternative Dispute Resolution (ADR) to assist with settlement" as a flat refusal to pay or discuss shows they do not want to "mediate".[/SIZE]

                    Comment


                      #11
                      Originally posted by Lori View Post
                      We are a management company nd one of our owner occupiers has failed to pay their service charges despite several letters.
                      what do we need to do now?? Can we take them to the small claims court??
                      How sure are you that your service charge requests are legitimate and according to the lease (correct timescale, proportions,as specified)?

                      Comment


                        #12
                        Yes.My FH clearly thought ha has a watertight case when taking action against me only for me to win each time due to various small errors in his demands, etc..wrong size, wording, etc.
                        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


                          #13
                          Originally posted by andydd View Post
                          ManagingAgent,

                          But ultimately any court action would have to be bought by the FH as the lease is between him and the LH (unless its a tripartie lease), so now we are this far employing a MA wont help, hes only there to do the day to day running/management he cant bring legal action although admittedly could be involved in the early stages of chasing the debt.
                          Hi Andydd,

                          Under S146 the freeholder would have to commence legal actions. Freeholders also like to use their own solicitors for this too. You are right about this. However you don't have to threaten S146 in all circumstances and alot of the times this is not needed.

                          The managing agent however can act as the representative of the RMC/RTM when attending court in the recovery of service charges. Alot of our RMC Directors prefer not to attend court as they do not wish to take time out of work etc. Therefore, me as the property manager would act as their representative too along with the barrister on the day.

                          The RMC can also own the freehold which can make things easier. So therefore without knowing more about the set up of the development/lease I can only give a limited advice on this, unless Lori can shed some more information on this. More than happy to help.
                          Information provided here does not constitute as legal advice and are my opions only, as there may be more information that are required in order to give a detailed answer. Please be cautious.

                          Comment


                            #14
                            In the FTT almost anyone can appear to represent the FH, thats a strange quirk of it but Im, not sure about County Court, I believe a FH can either represent himself, or have a qualified solicitor representing him, I dont believe he could have the management agent unless he was there as 'Mackenzie Friend' but that really only applies to LiP's.
                            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


                              #15
                              Originally posted by andydd View Post
                              County Court, I believe a FH can either represent himself, or have a qualified solicitor representing him.
                              From memory, the above is correct.

                              Letting agents can be there, only for the solicitor or the freeholder to ask them questions, as it's the letting agent that deals with the tenant / tenant problems etc, so they will have more facts available than the freeholder.

                              Comment

                              Latest Activity

                              Collapse

                              • Reply to Recurrent leaks from flat upstairs
                                by JK0
                                Do you have insurance for the contents? Maybe there is loss of rent cover included there.
                                18-05-2022, 06:11 AM
                              • Recurrent leaks from flat upstairs
                                by Ldawg
                                The flat I rent out has suffered from recurrent leaks from upstairs since I purchased it, 4 leaks in 4 years. It's caused me to lose one tenant already. I feel like there is no incentive for the owner upstairs to sort the problem (check the plumbing etc) as the cost is always covered by insurance and...
                                24-01-2022, 19:48 PM
                              • Reply to RTM director service charge arrears
                                by fos333
                                This is the important question, what are the reasons for non payment?

                                Have demands been correctly served including the correct summaries of rights and obligations?

                                Are the landlord obligations under the lease being carried out?

                                Have service charge end of year accounts...
                                17-05-2022, 21:48 PM
                              • RTM director service charge arrears
                                by ARG
                                Hello, I am new here so please excuse me if this question has already been asked, but a search has drawn a blank.

                                I am a director of an RTM of a property with 25 flats. I would be very grateful if anyone here can advise whether a resident who is more than six months in arrears with his...
                                17-05-2022, 15:38 PM
                              • Reply to Neighbour Dispute over Bins
                                by vmart
                                Is there a restrictive covenant in the title of the commercial-property owner (CPO) giving you and the other lessee a right of way over the land?

                                Is the CPO a freeholder or leaseholder of the land?

                                With regard to the point related to '20 years' you are referring to adverse...
                                17-05-2022, 21:06 PM
                              • Neighbour Dispute over Bins
                                by Tony-Edwards
                                Hello

                                I could do with some guidance if anyone has any knowledge on this.

                                I have a 100 year old flat that was split from a larger building in 2000 and has a 999 year lease, it is next door to a commercial premises.

                                The only way to get to my flat is across their...
                                17-05-2022, 14:40 PM
                              • Reply to RTM director service charge arrears
                                by vmart
                                The RTM can make a money claim online but as this enquiry concerns service charges the lessee will have the right to have the service charges determined unless already agreed. Depending upon the lessee's response to the claim, the County Court may refer the claim to the FTT.

                                What are the...
                                17-05-2022, 20:54 PM
                              • Reply to Recurrent leaks from flat upstairs
                                by Ldawg
                                Thanks for your response.

                                All costs are being covered by the management company. So currently I'm not actually losing out so I'm not really sure what I'm claiming for! More just the stress of it all. And the potential loss of earning and making unrentable/saleable as you say. Yes the floor...
                                17-05-2022, 20:22 PM
                              • Reply to Lease Extension - Relativity
                                by comm1985
                                I for one would appreciate a more stable approach in deriving the premium...

                                In this instance what would

                                1. The sensible premium be?

                                A)£32000 (based on the value the actual short lease was just sold for i.e Relativity 65%)
                                or
                                B)£20,000 (based on graph...
                                17-05-2022, 20:19 PM
                              • Lease Extension - Relativity
                                by comm1985
                                Hoping to get some clarification,

                                If a flat (Outside Greater London) with 60 years left is sold for £110,000 and comparable properties with longer leases attain £160,000

                                What is the relativity in this case?

                                Would it be £110000 less 5.5% (to estimate for no act...
                                17-05-2022, 15:12 PM
                              Working...
                              X