How do I calculate Late Payment Interest (10% above base rate per day)

ashtraxx

Hi,

On the property Assured Shorthold Tenancy Agreement signed by both parties it states that:

to pay interest upon any late rental payments at 10% above base rate per day for any amounts that are more than seven days late, whether requested or not.

But how do I calculate this per day? The rent in question is £500. If the base rate is 2% then do i do 12% * 500 * no of days?

Many Thanks

mbga9pgf

How about you get a heart scumbag... why not agree to settle for what is owed instead of nailing some poor soul that is in financial strife?

Or how about get 2 brain cells to rub together and figure out how to use an excel spreadsheet?

Absolute scum

mbga9pgf

Your above equation is completely incorrect BTW. You aint going to be milking them for anything like that made up figure in your head.

ashtraxx

Im the tenant!!!! :rotfl:

Had to withold rent as a last resort after landlord continually refused to do repairs. Now being asked to pay 52.20 a day for each day the rent is overdue hence the post!

So how should this be done?

superfran_uk

Well for a start it's not 500 a day. To work out the daily rate you'd have to divide by 31 (this month) first.

billyboy11

ashtraxx wrote: »

Im the tenant!!!! :rotfl:

Love it,, that has shut up the person calling you scum...

Proves its worth waiting for all the information before you judge people and call them scum,..!!!

Gorgeous_George

I'm surprised that you even ask the question.

Of course, you shouldn't withhold rent for any reason but I understand your frustration if repairs are not being completed within reasonable timescales. On the other hand, your LL may need the rent paid in order to pay the mortgage. By not paying you risk forcing him/her to be repossessed and you losing your home. I doubt you would get a good reference for your next property under these circumstances. There is a better way to get repairs done.

IF you were to comply with the AST regarding the rate, I suggest that it it is annual interest i.e., 12% would equate to 12% divided by 365 per day (about 50p). However, the term is probably unfair and could be unenforcable (I don't have time to search the Internet).

I'd pay the rent promptly but refuse to pay anything other than the LL's out of pocket expenses.

FWIW, when I read your post I thought you were the tenant but expected the regulars to have the usual swipe at LLs.

If your LL insists on the huge fee for late payment, tell him'her to take you to Court.

GG

silvercar

Base rate is half a per cent. 10 + 0.5 = 10.5.

10.5% is the annual rate ie the rate for a whole year. So on £500 owing you could be asked to pay just over 14p!

Charging 10% + base rate per day would equal £52.50. That would be outrageous and almost certainly rejected by a court.

Willsnarf1983

mbga9pgf wrote: »

How about you get a heart scumbag... why not agree to settle for what is owed instead of nailing some poor soul that is in financial strife?

Or how about get 2 brain cells to rub together and figure out how to use an excel spreadsheet?

Absolute scum

that backfired a bit didn't it And even if he was the landlord how do you know the tenants arn't taking the pee in the first place? A contract is a contract, maybe wait for more information next time.

Willsnarf1983

silvercar wrote: »

Base rate is half a per cent. 10 + 0.5 = 10.5.

10.5% is the annual rate ie the rate for a whole year. So on £500 owing you could be asked to pay just over 14p!

Charging 10% + base rate per day would equal £52.50. That would be outrageous and almost certainly rejected by a court.

But if it was 14p I don't think I'd be arsed to chase that extra amount lol

superfran_uk

It's only worth chasing if you're mathematically illiterate.