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Ground Rent Arrears and Letter Before Action - Help!

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Good afternoon,

I wonder if you may be able to offer advice in relation to a late Ground Rent Payment and subsequent ‘Letter Before Action’ fee.

I will elaborate.

I March 2010 I purchased an apartment from Miller Homes. A bi annual fee of £75 was due for Ground Rent.

In February 2012, Miller Homes were succeeded by a new freeholder. This new freeholder took on the responsibility of issuing all future ground rent demands.

On 24th May 2013, I received a ‘Letter Before Action’ from the Freeholder in relation to outstanding arrears and fees. I have been informed that if the account isn’t settled within 14 days legal proceeding will commence.

The statement dictates that I owe half yearly ground rent for the period 1st Jan 2012 – 30th Jun 2012 and 1st Jan 2013 – 30th Jun 2013.

In relation to 1st Jan 2012 to 30th Jun 2012, the Ground Rent was being dealt with at that stage by the initial freeholder. I have an electronic receipt that shows that the ground rent was paid 07/01/2012.

In relation to 1st Jan 2013 – 30th Jun 2013, I have received no invoice and no correspondence from the freeholder in relation to this period. I have received no demand nor any subsequent reminder requesting payment.

The letter received 24th May 2013 also includes a ‘Letter before Action Fee’ of £120.

I have today challenged the statement of facts and fee with the Freeholder, but to no avail. They state that an invoice was sent and therefore I am liable for all charges and fees.

Now, I do not dispute the fact that I owe ground rent for the period 1st Jan 2013 to 30th Jun 2013, however as stated I have received no invoice or accompanying documentation relating to Section 166 of the Commonhold and Leasehold Reform Act 2002.

The freeholder cannot prove that they sent this document, nor can I prove that I did not receive it. Royal Mail isn’t flawless and it’s possible any documentation was placed in the wrong letterbox (there are 12 on the wall).

Having spoken to the freeholder, I explained the situation and offered to pay the ground rent 1st Jan to 30th Jun without delay. I stated that the letter before action fee was unfair and unreasonable. I was instructed that I had no choice but to pay. There was no negotiation over this fact. The freeholder confirmed that they had my email address and phone number so I enquired as to why if the ground rent was overdue, had there been no follow up contact, late payment reminder etc. I was informed that the company did not have to do this.

I am now left in a quandary and unsure as how best to proceed.

Any advice would be greatly appreciated.

Kind regards.

Comments

  • I am having a very similar problem with HomeGround. They state they have been sending out letters which I haven't received, but claim they they have proof or delivery but not proof of receipt, therefore I am at "fault" and have started a legal process in order to claim the rent and solicitors fees.

    How are you getting on with this?
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