Rent charges

jacroberts

Hi All,

I own a house with my partner that is a freehold property but we still pay a rent charge (I've never been able to get my head around this!). I have just received a letter for 2 lots of £5 rent for the past 2 years. I have no problem with that. However the letter is threatening legal action as it is in arrears. This is the first letter I have received! They want to charge a £20 late payment admin charge.

I phoned to explain that I have not received any letters and the lady was extremely rude! Demanding that I pay up. I said I have no problem paying the £10 but I don't see why I should be penalised for undelivered mail. I was then told to take it up with Royal Mail. I asked if there was proof of postage, there is none.

Once I mentioned I would take advice on this charge, she offered to drop it to £15. But then retracted this when I said I wasn't happy with that either.

Do I have any legal rights here? Or do I need to just cough up?

Thanks for your help.

Jacqueline

princeofpounds

a) what a ridiculous petty thing! You could probably write enough back and forth letters to cost her £20 in stamps!

b) I don't understand about how you have to pay rent 'freehold' either... sounds strange to me. Does it say you have to pay it in your deeds? Are you SURE you are freehold?

c) If it was covered by lease arrangements then I would tell you to go to lease-advice.org and get the full lowdown, and that you shouldn't worry as ground rent demands require notification before liability is due, is my understanding. But given point B I'm not sure.

Yorkie1

A "rent charge" is an annual amount of money which is paid by a freeholder to someone who has no legal interest in the land. "Ground rent" is usually used in the leasehold context to mean something else, but can occasionally mean a rent charge in the freehold context.

Does your land registry entry show that your property has a rentcharge attached to it? Did the sellers or your solicitor flag it up when you bought? How long have you lived at the address and have you paid it in the past?

I'm just wondering whether the rent charge is still attached to the land, and why the person has not written to you for the most recent couple of charges. If you've been there for donkey's years and they just missed twice, then it could be argued that you knew of the existence of the rent charge and to whom to pay it.

But if you didn't have any information and hadn't received any previous demands, then I can't see how you can be blamed / charged for late payment in the absence of proof of posting to you of those previous demands which they presumably assert they have sent and you have ignored.

jacroberts

I did know about the charge. I can't remember whether the solicitor mentioned it or whether the first I knew was a letter asking for money. The first letter we got dated prior to when we moved in, so I initially queried this and was basically told to pay up, it wasn't much so I did. I don't think I actually have a copy of the deeds, I think the solicitor holds them, but I will have a look when I get home.

The company are claiming they wrote last April asking for £5, I didn't get this letter. They say they wrote this April asking for £10, I didn't get this letter either. Their argument is that I should just know I need to pay. Sorry but I have a fairly busy life!

So I am aware that we pay this charge (which on Wikipedia says they will become defunct in 2037) but genuinely have not had any requests for it.

I just really don't want to have to pay this admin fee to a rude, unhelpful woman when I haven't done anything wrong!

tbs624

jacroberts wrote: »

I did know about the charge. .........Their argument is that I should just know I need to pay. Sorry but I have a fairly busy life!

OP - this is what is known as "sweating the small stuff" . You know you have to pay once a year so get their bank info and just set up a standing order to them. Job done.

jacroberts wrote: »

I just really don't want to have to pay this admin fee to a rude, unhelpful woman when I haven't done anything wrong!

So write, enclosing a chq to bring your payments up to date and tell them that you will be happy to pay by SO in future.

Unless they had previously detailed such admin charges for defaulting on your due payments they will be hard pressed to pursue you for it.

peter_m14

You can confirm whether you have a rentcharge or chief rent on your property by looking at the deeds to your property. If so, you legally have to pay it.

However you can apply to the National Rentcharges Unit, which is part of the Department for Communities & Local Government, at [EMAIL="rentcharges@communities.gsi.gov.uk"]rentcharges@communities.gsi.gov.uk[/EMAIL] to pay a one off free to redeem it.