Can I ask leaseholder for funds prior to major works commencing?

ninjinski

Hi

I have recently written to my leasholder in line with Section 20 requirements to state that we are proceeding with the a mojor works project that is needed to maintain the property.

I have some challenges however, they are saying they have no money and have not been paying ground rent unless pressured and reminded time and time again.

I now hear that they may be looking to move and may put the property on the market. My question is where do I satnd with this and in line with the section 20 once I proceed with the 2nd phase and propose contractors can I then move to ask for the funds prior to work starting to ensure I get the money to proceed?

Many thanks indeed.

N

sunnysea83

It will depend on what the lease says as to when you can ask for the funds. does the lease allow for payments in advance? every lease is different, you may like to contact lease-advice.org for more information

Fire_Fox

Exactly as Sunnysea says - just to note that the flat won't sell if the service charges or ground rent are in arrears as the solicitors will write to the freeholder/ managing agents to get formal confirmation of what is due, any owing, any future expenditure. Do you know that arrears (if not disputed) can be lodged against the leaseholder's mortgage? Obviously it's not a simple process, but threatening it can be very effective in getting payments made.

ninjinski

Fire_Fox wrote: »

Exactly as Sunnysea says - just to note that the flat won't sell if the service charges or ground rent are in arrears as the solicitors will write to the freeholder/ managing agents to get formal confirmation of what is due, any owing, any future expenditure. Do you know that arrears (if not disputed) can be lodged against the leaseholder's mortgage? Obviously it's not a simple process, but threatening it can be very effective in getting payments made.

Many thanks to both of you regarding your responses. I will check the lease. In terms of the property not selling are you saying that we would be in a position to inform any new buyers that ground rent is outstanding and also that we are planning major works early next year and would expect payment at that time?

Best regards
N

carolinosourus

You're not in Haringey are you?

ninjinski

Birmingham, why, should that matter??

carolinosourus

Lol no not at all, it was just there was a post a few days ago from someone in Haringey saying they were being charged about 20 grand for a new roof. I wasn't sure if you might be the other party!

Sorry to hijack your thread

sunnysea83

ninjinski wrote: »

Many thanks to both of you regarding your responses. I will check the lease. In terms of the property not selling are you saying that we would be in a position to inform any new buyers that ground rent is outstanding and also that we are planning major works early next year and would expect payment at that time?

Best regards
N

I would imagine that any purchasing solicitor would ask for an up to date copy of the service charges and also ensure all service charges are up to date, however it has been known and espically when someone has died and left an estate for the service charges to be paid on completion of the sale from the equity. so that could be an option for your leaseholder. but yes any buyer would want to make sure all service charges are paid before they completed.

ninjinski

The lease says: Within 28 days of demand to pay to the landlord the same percentage as the tenants contribution or any sum or sums actually expended by the landlord or which it might be necessary to expend which expenditure the landlord cannot meet from funds in hand.

So does this mean I could ask for the money up front?

So a final question: When is the point of no return when the leaseholder has to pay the funds for the major work or face legal action? Im thinking about if they move during the process in hand or when works are about to be undertaken.