Freehold Managers Ltd

semx5

I have a flat which I rent out. When i purchased it, last year my solictors told both management agents of my address for bills etc. I also phoned them with my details. Freehold managers just have the ground rent £150 a year. I have just recd a final demand from them, threatening legal action for non payment, even though they haven't sent any bills to my address or the tenant. Also they have added late payment fees £72 as well. I phoned them to pay the ground rent, but they want the late fees as well. Any suggestions, ( maybe I should have reminded them to send me a bill ) it just seems unfair.

propertyman

I am willing to bet that your solicitor will open their file and find that notice was not served on the freeholder or it's agents ( as distinct to the managing agent).

It's a common mistake and phone calls cannot be acted on until the formal notice is received I am afraid.

On the off chance that notice was served a fee paid and the notice receipted, which in turn advised them of your actual address, then it's a simple matter of
a: providing in writing the paperwork and pointing out their error
b: asking them which part of the lease allows them to add on a late charge ( they rarely do)
c: that you hope to resolve this without reference to the LVT to determine the pay -ability of the charge and if it is, it's reasonableness
d: that if it is not payable, then you will ask for an additional award of up to £500 for them acting unreasonably.

http://www.justice.gov.uk/downloads/forms/tribunals/residential-property/lvt2-liability-admin-charge.doc

:money:If you buy a property and there are charges due on it for rent and service charge, and especially if you rent it out, you must diarise the due dates and ask if the bills aren't sent. Mistakes happen as well as some landlords trying to manage the asset and wring as many extra fees as they can.

Fire_Fox

Did you formally advise the freeholder/ managing agents - ie. in writing not by telephone - of your preferred address? Not sending bills is not the same as sending to the wrong address, which is it? You know when ground rent is due and how much it is, put it in your diary and save yourself a lot of hassle. Do you now have a copy of the bill? What penalties are permitted under your long lease?

"Ground rent is a payment made by the leaseholder to the landlord as a condition of the lease. The payment of ground rent (as with any rent) is specified by the lease and should be paid on the due date. Although it is the leaseholder's responsibility to pay the rent, this must be subject to prior notification from the landlord who must use a form of notice prescribed by Regulations. The rent cannot be legally recovered by the landlord unless he has first asked for it.

Notice for payment of ground rent

The leaseholder is not liable to pay the ground rent unless the landlord has demanded it. The demand must be in the prescribed form and must specify:

the amount of the rent due;
the date on which the leaseholder is liable to pay it, or if the demand is sent after the due date, the date on which it would have been payable under the terms of the lease.
The date specified for payment must not be less than 30 days or more than 60 days after date of service of the Notice, or before it is meant to be paid in accordance with the lease. It may be sent by post to the address of the house or flat to which it relates, unless the leaseholder has previously notified the landlord of an alternative address.

The Notice of Demand must also include:

the name of the leaseholder to whom the notice is given;
the period for which the rent demanded relates;
the name and address of the person or company to whom the payment is to be made;
the name and address of the landlord (or agent if applicable) by whom the notice is given;
certain supporting information, provided as notes to the Notice."
http://www.lease-advice.org/publications/documents/document.asp?item=14

semx5

Hi, Thanks for the replys. I know I should have kept track of when the bill was due, won't make that mistake again!. Luckily my solicitor has just given me a copy of the formal notice they sent to them when I bought the flat. This clearly tells them to use my address, for all correspondence and bills. When I first tried to call, they stated that they did not have my address. I have just sent letter with my evidence, by recorded delivery, Hopefully they will agree to remove the late payment fees.

spacemanc

Always deal with them by letter or e-mail so you have a paper trail. It's very hard to prove phone calls if things escalate (and they can escalate very quickly with these jokers)

They took me to court recently over ground rent arrears - their case was thrown out and I was awarded a nice chunk of money for wasted costs. The vital piece of evidence backing up my defence was an e-mail I sent very early on - without that evidence it could have been a very different story.

Ulfar

I hope you sent them copies of your documents and not the originals.