Leasehold flat: non payment of service charges / landlord shutdown of TV system

JasX

Hi all,

Quick question on a situation involving a leasehold flat.

Basically the leaseholder is being a somewhat delinquient and not paying their service charges (which unsuprisingly their lease stipulates needs to be paid)

The lease also stipulates the landlord will alllow free flow of utilities gas water electricity etc to/from the property and also maintain the communal TV distribution system.

Thing it seems to have occured to the landlord that shutting down access to the communal TV/satellite TV system (for the deliquient flats only) might be a good way to encourage them to pay up their arrears.

Are they wandering into a legal minefield here or is it quite legitimate?

The lease prohibits putting up individual external dishes or aerials, and does make provision for punitive interest on service charge arrears but not anything along the lines of cutting services off in the event of non-payment....

any thoughts?

Ulfar

If you are the freeholder do not do it this would considered harassment and is illegal.

If you are the leaseholder I suggest you pay up. If you don't the freeholder can eventually have your lease voided as you are in breach. It doesn't usually get this far if you have a mortgage as they apply for the charge to be paid by the bank. This money is then added on to your borrowings, what the bank charge in interest is up to them and can be quite steep. They could if they were feeling particularly annoyed call the mortgage in.

JasX

Ulfar wrote: »

If you are the freeholder do not do it this would considered harassment and is illegal.

Thanks Ulfar, I'm actually another resident looking to move forward with a RTM in the near future and don't particularly want to inherit accounts with a large black hole in them.

I'll mention the above to the current managing agent (who we're likely to keep on and had the idea) and suggest trying to go the 'charge the leaseholders mortgage company' route instead

ta

:A

Ulfar

Think very carefully about taking this on. I served as a director of a residents association. It takes up a lot of time, effort and goodwill for no money.

You already have non-payers, this is something that can be incredibly difficult to sort out.

Fire_Fox

JasX wrote: »

Thanks Ulfar, I'm actually another resident looking to move forward with a RTM in the near future and don't particularly want to inherit accounts with a large black hole in them.

I'll mention the above to the current managing agent (who we're likely to keep on and had the idea) and suggest trying to go the 'charge the leaseholders mortgage company' route instead

ta

:A

Why would you want to invoke the Right to Manage only to retain the services of the current managing agent? Do you mean you are considering purchasing the freehold? Why don't you just set up a recognised tenants association?

Superior landlords absolutely cannot withhold services specified in the long lease when there are arrears on a service charge account. The freeholder or his agent will need to take the leaseholder to court before asking for the lender to stump up the arrears. If there is an ongoing dispute the case may need to be heard at a Leasehold Valuation Tribunal.

Agree with the others, I know several people on the board of their building's management company and it really is a thankless and incredibly time consuming task. I would be even more reticent if there were non-paying leaseholders and/ or a freeholder who has no regard for the law. We have arrears in my building (inc. myself) due to a dispute that has been running for almost four years.