Freaking out about missed payment and subsequent fine.Any advice gratefully received!

teaandcakeordeath

Hi,

I hope this is the right place to post... Please forgive me if it isn't!

I have a mortgage on a leasehold flat. Every year in July I have to pay ground rent of £150. It used to be on a standing order but I've changed bank accounts twice since last years payment so somehow the standing order hasn't continued- I didn't notice this...

On Thursday when checking my mail box I had a stack of letters all bundled together with an elastic band (they weren't there on Wednesday! I check it every day) and a scrawled note from a neighbour who had found them in their mail box. I went through the letters. In the bundle there were two from the ground rent company. The first was dated 30th June saying the annual payment of £150 was due by 14th July. The second was dated 21st July saying the payment had been missed and a late charge had been added making the payment now due £184.50. If payment not received by 4th August it would be referred to a debt collection agency. I then opened a letter off the debt collection agency dated 5th August. They are demanding payment of £384.50 by 12th August. As I've clearly been an idiot and not realised the standing order hasn't continued I've spent the £150 on the final things that the baby will need- basically kitted out the nursery with paint/ carpet etc. not exactly things I can take back for refund to be able to at least pay a chunk back...

I'm currently 35 weeks pregnant. I am the sole earner. I have no savings and my pay has been reduced for the past month as I have been off work sick due to pregnancy related illness. I genuinely do not have this amount of money- nor do I have any credit/ family who could lend me it. I was pretty gutted/ upset by this. I've never missed a payment before. I spoke to the debt company who have offered to reduce their fees by £40 and have said I can pay the debt off in 5 installments. As i've just said though i'm about to go on maternity leave, my pay will be reduced by at least £300pcm- a monthly payment of £68.90 is equivalent to half of my calculated food budget. I've already reduced all of my payments as much as possible and I have no idea what to do next. My OH is not entitled to state benefits as he was self employed before his business failed and apparently my wages put him out of the income assessed bit (prior to going on mat leave I earn approx £1450-1500 pcm, we're not rolling in cash!). He was basically told to bog off by the job centre and not to waste their time. He is looking for work but isn't having any luck.

I don't mind paying my debts. I find it incredibly hard to believe that an oversight on my behalf (which I wouldn't deny!) combined with a stockpiling of my mail by some idiot will leave us struggling to eat for 5 months. Is there anything I can do? Does anyone have any advice or experience of anything like this?

I'm really sorry about the ridiculously long post but I don't know what to do other than get stressed and upset!

Thanks for reading!

happy_bunny_2

No expert here.

I don't actually know how much of a priority debt this is when comparing to food and gas etc. national debtline will, so maybe give them a quick call.

The amount of charges they have added is ridiculous in my opinion. I would complain, in writing to the owner of the debt wit a copy to the Debt Collector.

How were they delivered? basically, who's fault is it they went in the wrong mailbox? Royal Mail or were they hand delivered?

sourcrates

Hi,
They are trying to rip you off, the ground rent demand is invalid unless compliant with s.166 of the Commonhold and Leasehold Reform Act 2002 (Google is your friend here).
Even if that demand is valid as to form, the variable Administation Fee demand is invalid unless compliant with s.158 of that Act.
Do not pay charges that may be invalid.


When dealing with companies like this, with a known record of making excessive rip-off demands, you really need to get a copy of your lease and keep it for reference.

Often the lease will state the charge for arrears of ground rent is calculated on payment of interest at 5% above bank rate for a certain high street Bank.

So write a covering letter, and make them an offer of payment for the arrears (post by recorded delivery) . Also say that you do not agree to pay the admin charge until you have received a breakdown of the costs and can accept it as compliant with s.158 or will apply to the leasehold valuation tribunal (LVT) for judgement on its reasonableness.

FBaby

When the baby is born, you'll be able to claim tax credits and child benefit, so that will be added income that you can use to repay the debt.

teaandcakeordeath

Thank you all very much for your advice. I have the lease safe in a box somewhere so I'll dig it out in the morning and google away. I just have no idea where to start.

Happy bunny- I assume that Royal Mail/ TNT (we have them both in Liverpool) have put them in the incorrect mail box- none of letters in the bundle were hand delivered. I don't know which one as the neighbour who put them all in my box didn't say which flat they were from so I can't ask them. I'd probably lose my temper with them anyway as I have no idea why you'd hoard someone's mail for a month. Unless it was from one of the empty flats and they've only just emptied the box out. There's really no way of knowing...

Sour crates- thanks for all of the helpful pointers. I will do some reading and see whether or not they can be justified. I was worried about demanding a breakdown of the charges (I'd already asked semi-hysterically/ in hormonal tears on the phone how they could justify that charge) as they have said they need the first payment by this Tuesday or more charges will be accrued and it could go to court. If I ask for a breakdown then I'm obviously not going to be able to make a payment before that deadline... The company is Property Debt Collection http://www.propertydebt.co.uk collecting on behalf of Dorchester http://www.dorchestergrm.com.

FBaby we were under the impression that both partners had to be in work to be entitled to tax benefits? I know we'll get child benefit but i'd already factored that into my maternity pay/ monthly money so it's already spent on bills and food etc. iyswim? I've asked my mortgage company about repayment holidays (not available with my mortgage). They've offered to see if i'm eligible for a 3 month break but it will hit my credit file and will also increase my monthly payments after that so it's a bit like robbing Peter to pay Paul...

When_the_going_gets_tough

Child tax crits depend on your joint income - neither of you have to work to claim them. Working tax credits - if you are a couple with a child I think between you, you have to work 24 hours per week.

teaandcakeordeath

When_the_going_gets_tough wrote: »

Child tax crits depend on your joint income - neither of you have to work to claim them. Working tax credits - if you are a couple with a child I think between you, you have to work 24 hours per week.

Thanks for this. I've used the 'entitled to' website calculator thing and it never seems to think that we're entitled to anything. I earn £23825 before tax/ overtime/ enhancements (NHS worker)- this goes up to £24799 in January. OH doesn't earn/ receive anything. I usually pick up about £1500 pcm after tax, NI, student loan, pension and union fees, about £1100 goes out in bills- this is all obviously before going on mat leave/ pay. We don't have any savings so any unexpected costs hit us hard and I know that being rubbish with money in the past has made life much harder as i've accrued debts which I am now paying off.

I think that we're destined to be people who never qualify for state benefits tbh. I'm not saying that we should (before anyone accuses me of having some sort of sense of entitlement!)- I know there are people who are in much worse financial positions, just that we always seem to miss the criteria or get told to bog off!