Aggressive Freeholder/Admin Fee - Help!

Average_Joe_2

Hello,

I am hoping that someone will be able to offer some advice.

The basic scenario is this:

I own a two bedroom leasehold flat.

In May I received a ‘Letter Before Action’ from the Freeholder. This document stated that the ground rent was in arrears, this was payable within 14 days and a ‘Letter before action’ fee of £120 was added to my account “as per the enclosed summary”.

Now, prior to this letter, I had received no invoices for Ground Rent from this company that complies with legislation.

I immediately contacted the Freeholder. The Freeholder in question had purchased the Freehold approximately 14 months previously. Prior to this, all Ground Rent was paid to the original builder of the new build property.

I offered to pay the ground rent arrears immediately, however refused to pay a £120 Letter before action / admin fee as I deemed unreasonable. I explained that I had received no invoices and the only previous correspondence had been over a year previously when they introduced themselves as the new freeholder.

I pointed out that the “enclosed summary” was incorrect, as one of two periods shown had been paid to the predecessor.

The matter has been going back and forth for the past 6 weeks. In this time, I have established and pointed out the following facts:

1.) The correspondence address that the freeholder holds for me is inaccurate. It contains Flat Number, Block of Flats Name, Road Name, Postcode. However, it neglects to include the Number of the road if that makes sense. For example, correspondence has been addressed Mr Joe, Flat 1, ABC House, ABC Road, AB1 2CD, instead of Mr Joe, Flat 1, ABC House, 46 ABC Road, AB1 2CD.
I attempted to explain that the address that they have allegedly sent post to was not exact as that on my lease and this could explain as to why invoices had not been received. There are also a number of other blocks on this road that also incorporate the name ‘house’ in their title.

2.) Other residents have failed to receive recent documentation allegedly sent by the freeholder.

In communication with the freeholder, they have stated that they have sent ‘similarly addressed’ letters. I point out that I have no ‘similar’ address, only an actual address. I point out that I received their incorrectly addressed letter by chance, as I cannot rely on the postman to get it right as its not correctly addressed.

I have raised numerous points with the freeholder yet they have failed to return emails.

I have asked simple questions such as asking for the Freeholder to confirm the clause in the lease that allows them to charge admin fees yet having asked this question 6 times, I have received no answer.

I have threatened with taking the matter to LVT to allow for determination as to reasonableness, however I get no response. £120 for a letter sent from an office with no Solicitor involvement is absurd.

I have asked for details of the complaints dept, Director etc, but they have failed to provide these.

The email chain has continued this week. At one point, the individual with who I have been dealing, accidently sent an email to myself that should have been sent to a colleague within their organisation, asking “Are you going to reply to Average Joe, or are you ignoring him?”

I have repeatedly refused to pay the £120. This week they have offered to reduce the fee to £60 if I paid within 7 days. Again, I refused, then it was changed to £60 by Fri 28th.

I am so frustrated, by the aggressive tactics that this freeholder is using.

In your experience, where do I stand and what should I do?

princeofpounds

Stop asking a scattergun of questions and learn what your actual rights and responsibilities are. Best thing to do is read your lease and visit lease-advice.org. You can also phone them; they are a govt- funded advice service.

You may wish to visit landlordzone long leasehold forums and ask the question there too.

Broadly speaking the freeholder can only do what is in the lease, needs to follow certain billing and consultation procedures to do them, and anything else should be simply ignored as a speculative invoice.

Average_Joe_2

Thank you. However, I have have looked at lease advice. However, I would be more interested if other individuals have experience similar tactics.

princeofpounds

Yes it happens loads. Just google simarc! (Not that I would ever suggest they have dishonest practices, but clearly people have had complaints in the past)

Speculative invoicing is a scam in all sorts of areas. Most private parking tickets for example are nothing more.

Personally I think it should be a crime at some level, but alas it is not.

moromir

Average_Joe wrote:

Hello,
2.) Other residents have failed to receive recent documentation allegedly sent by the freeholder.

In communication with the freeholder, they have stated that they have sent ‘similarly addressed’ letters. I point out that I have no ‘similar’ address, only an actual address. I point out that I received their incorrectly addressed letter by chance, as I cannot rely on the postman to get it right as its not correctly addressed.

You have misunderstood the phrase "similarly addressed", when used in this context it means the same as the original letter they were referring to.

I.e. Susie wore her blue school uniform with grey tights, the other girls on the bus were similarly attired.

I.e. all the girls were wearing the same school uniform.

Hope that helps. I'd forget this 'arguement' it clouds your more solid points.

ValHaller

Pay the Ground Rent immediately if it is correctly billed. This leaves the freeholder to pursue you for £120 'LBA fee', which they will find hard to justify. If you hold the Ground Rent hostage against the 'LBA fee' you give the freeholder free rein to take you to court for the ground rent which they will win.

When you pay send a terse covering letter which identifies that the payment is against ground rent and says nothing else. Keep a copy of this letter because it may be important later.

Average_Joe_2

Thank you. The arrears were settled on the first business day after receipt of the original letter in May. They just continue to demand this admin fee.
I'm just unsure as to whether they will be able to take this matter further.

princeofpounds

Probably not, though if they are trying it on they can push it quite far (right up to letters before action) so you should research to become certain in your position.

There is an unlikely possibility that they can charge things like this according to the lease, but given they seem to have messed up billing and so on then I really really really doubt it even if the lease was weirdly punitive in some respect. I just can't give you a definitive answer.

Average_Joe_2

I have put the onus on them:
1.) Stated that they provided me with an inaccurate account summary.
2.) They allegedly sent an invoice for a period that had been covered by their predecessor. They sent a copy via email after my first contact with them. I pointed out that their record keeping was very poor as the period had already been covered.
3.) Incorrect address.
4.) Having spoken to neighbours, a quarter in my block failed to receive the recent invoice for the forthcoming period.
5.) Their emails have been strewn with errors.

They refuse to pass details of the Director or his email address for me to contact direct.

The company website is non existent. There is just a holding page for a web design company.

propertyman

Average_Joe wrote: »

I have put the onus on them:
5.) .

Foolish and wrong.:eek:

The onus is on you to assert your rights, this will escalate and you will be facing extensive legal costs.

This will help in tackling it properly not on a mish mash of what you think should be done

http://www.landlordzone.co.uk/forums/showthread.php?55587-Late-payment-charges-SC-and-GR

Average_Joe_2

Thank you. Apologies for my reply not being adequate.

I appreciate the comment re: Onus. The point I make however, is that I have asked over 7 times for certain information, such as clarifying the clause in the lease where it states an admin fee can be charged.

I have looked at the Landlord Zone website previously and as stated:
"Rule 3: At this stage, these charges are only be due if the lease allows for them to be charged and either check your lease or write and ask “under what section(s) of the lease are these charges due”".

I have asked 6 times and each time I receive an email reply the above question has been ignored.

Again today, I have had an email from the FH where they have not answered the above question or any others. Instead the FH stated that I had until the end of business today to decide whether to accept 50/50 and pay £60. Naturally, I have refused.

I again have asked that the original questions be addressed as they are not unreasonable.

The FH stated that if I do wish to take the matter up with the LVT then do not omit to inform them that they have made an offer of a 50% reduction of £60.

Can you tell me, if I apply to the LVT for determination of reasonableness, if I pay the £50 application fee and a result is in my favour, can I personally claim this £50 back from the FH?

Can the FH take me to Court although there is nothing in the lease? I have pointed out to the FH that there are other residents who have failed to receive recent post from them and they are willing to provide evidence. Surely, they would be foolish to consider this option, is any decision is made in County Court "on the balance of probabilities".

I appreciate your wealth of experience in this matter. There is only so much attempted research and understanding that I can cope with.

Thank you.