Ground Rent - debt collection agency threats

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Comments

  • Guys, do not worry about this company i think they did exist for a very short period but have closed. I think they were a sole trader therefore would not be listed on Companies House. Their phone numbers and website do not exist therefore they are closed.
  • lijojo
    lijojo Posts: 9 Forumite
    I live and work in Northern Ireland and have worked for soilcitors. If they go though the courts to collect they can only claim for 6 years backdated ground rent (and then that only applies if your date of completion takes you back 6 years). If you completed say 3 years ago, they can only claim 3 years ground rent. They will have to seek indemnity from the previous owner. Indemnity shoudl be sought from the Vendor to you via their solicitors.

    Hope this helps.
  • b4lee
    b4lee Posts: 1 Newbie
    lijojo wrote: »
    I live and work in Northern Ireland and have worked for soilcitors. If they go though the courts to collect they can only claim for 6 years backdated ground rent (and then that only applies if your date of completion takes you back 6 years). If you completed say 3 years ago, they can only claim 3 years ground rent. They will have to seek indemnity from the previous owner. Indemnity shoudl be sought from the Vendor to you via their solicitors.

    Hope this helps.

    Hi There, does that mean if I completed in 2001 and they are trying to collect from then until now 2010 that I only have to pay six years of this? and if I do let this go to small claims and I lose do I have to pay their solicitor?
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    b4lee wrote: »
    Hi There, does that mean if I completed in 2001 and they are trying to collect from then until now 2010 that I only have to pay six years of this? and if I do let this go to small claims and I lose do I have to pay their solicitor?

    So does this cover the usual limitations then? i.e. limitation act 2000 states debts can only be claimed for 6 years, does this apply here? ;)
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • JasX
    JasX Posts: 3,996
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    edited 4 March 2010 at 9:10AM
    Fire_Fox wrote: »
    I am speaking about the English law......

    ....... I don't think you are liable until you are in receipt of a proper bill (certainly the case with service charges).

    It can be very dangerous giving legal advice with only part of the facts. In English law there is a HUGE difference in the legal status of ground rent and service charges.

    Basically:

    Service charges = lots of protections for the leaseholder, specific rights and prescribed formats in which the freeholder/managing agent needs to bill you before you are liable, protection from non-payment and ability to dispute them in a broad range of circumstances. Limited scope of what the Freeholder can do to recover amounts not paid if they've not done everythign to the letter off the law and followed a stringent proper procedure.

    Ground rent = Completly different!! ALWAYS due whether demanded or not, zero (practically) protection for leaseholder for non payment. Technically the Freeholder can very easily terminate the lease for non payment and sieze the entire house back even for relatively small amounts (but not often is this enforced by a court).

    There have been several court cases of leaseholders getting into dispute with their freeholder and witholding payment, sadly a fair few where had they only withheld service charges they'd have probably been fine but because they were not paying ground rent too they had no protection from penalty clauses in their lease and lost their house.

    I don't know how NI law differs, is there anythign in your Lease/Deeds about ground rent?
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    Have you checked out sites like this for info?

    GROUND RENTS ACT (NI) 2001

    Ground Rents Act (Northern Ireland) 2001 No. 5

    BBC NEWS | UK | N Ireland | Change in ground rents law
    A leaflet explaining the Act is also available on the Office of Law Reform
    website at www.olrni.gov.uk or from the Office of Law Reform on 028 9054 2901
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
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