Ground Rent Arrears Letter....is it Fair?

dynamitedave

Hi All,

I own a two-bed flat of which the ground rent is payable to Forte Freehold. They sent out a rent DEMAND in june forthe period 1st september - 28th Feb.

I realised yesterday that I had not paid it and hadnt received any reminders so paid it by bank transfer. This went through as an instant payment.

Today I received a statement thanking me for my payments but showing an arrears of £67.20. This has been added to my account as an admin fee for producing a letter YESTERDAY....i.e. the same day they received payment.

IS this fair and legal...can they add a retrospective charge?

thanks,

Fire_Fox

Welcome! Been a thread on this in the last couple of days, please run a search.

dynamitedave

thanks firefox, did do a search but couldnt seem to find anything similar hence the re-post!

GDB2222

https://forums.moneysavingexpert.com/discussion/4194801

See propertyman's post

The ground rent is payable whether they demand it or not. However, they need to have some basis for the admin charge. Of course they want it, but the question is whether you have to pay it?

Fire_Fox

I don't read this as adding a retrospective charge, I read it as them sending you out a reminder letter with the charge on that you did not receive. So the latest letter is a statement of your account not a notification of charges. You need to speak to your freeholder.

dynamitedave

thanks, I am waiting on their response. My argument is that receipt of my payment should not have prompted them to try and charge me. They have requested settlement within 7 days or "further charges will be added to your account"

propertyman

GDB2222 wrote: »

https://forums.moneysavingexpert.com/discussion/4194801

See propertyman's post

The ground rent is payable whether they demand it or not. However, they need to have some basis for the admin charge. Of course they want it, but the question is whether you have to pay it?

Sorry but I hope that I didn't say that or didn't make it clear- the ground rent is due under the lease whether formally demanded or not , but it does require that a notice under section 166 CLRA 2002 is sent otherwise the leaseholder can withold payment.

Admin costs are only due if the lease allows them as said in the post.

GDB2222

propertyman wrote: »

Sorry but I hope that I didn't say that or didn't make it clear- the ground rent is due under the lease whether formally demanded or not , but it does require that a notice under section 166 CLRA 2002 is sent otherwise the leaseholder can withold payment.

Thanks for correcting me. I am clearly out of date.

Early_Bird_2

I hate to tell you this but that is the reason that ground rent companies do not chase you for payment, because by law they don't have to!!! They rely on people not to open/read thier post and act on it in time. Your ground rent payment could end up into the hundreds if not thousands of pounds if you are not careful. I am not trying to be a scare monger in this, we have had the same issue with this company and believe me they will not respond to you unless they absolutely have to... don't become one of their victims please and make sure you read your lease and do what it says....