Freeholder claiming costs for unpaid ground rent without ever sending an invoice

Owlish

We bought a flat in 2013, and the freehold is owned by someone who doesn't live in the building - a professional freeholder. We paid the first years ground rent and insurance up front and then forgot about it, and have had no communications with the freeholder since. Yesterday, we received a solicitor's letter, demanding overdue ground rent & insurance from Jan 2014, plus £150 costs. This is the first communication we have had about 2014 ground rent & insurance (they've attached an invoice, but we've never had this).

I have attached a copy of the letter we have been sent. There's no question we will pay the invoice, as of course, we owe it. However, I'm really upset that there's an extra £150 on this for costs, as we've not received anything from the freeholder before this. Surely we should have received an invoice, and even a reminder or two? Are we obliged to pay this with the £150 costs or is the onus on the freeholder to prove that an invoice and / or reminders were sent (they weren't)? And if so, who should we write to - the solicitors, or to the freeholder?

We would really appreciate any advice. Thank you in advance.

AnnieO1234

I think this may depend on the wording of your lease but someone more knowledgable will be along if not tonight, tomorrow.

X

Pete9501

There is an extra layer here, the free holder has appointed a managing agent to collect the service charges.

I would ring them in the morning and pay the service charges then complain like mad that you haven't received an invoice or any follow up reminder.

I think the MA should be sacked for allowing a £1400 bill to remain unpaid for 11 months. In fact we did, we are on our 4th MA in 10 years.

Whether you are liable for the extra £150 well, we don't allow a leaseholder to escape the extra charges if they pay late.

Owlish

Pete9501 wrote: »

Whether you are liable for the extra £150 well, we don't allow a leaseholder to escape the extra charges if they pay late.

Many thanks for your reply. I don't know if it makes any difference, but the letter above is from a Solicitors firm, not a managing agent (unless solicitors do this?).

Vis a vis the section of your post I've quoted, fair enough, but we haven't intentionally paid late - we've never recieved an invoice or any other communication. It almost seems like trying to catch someone out to not send anything and then hit them with a solicitor's letters and extra fees, and this is what I object to. Had we been sent an invoice in January, I would have paid it.

Pete9501

The MA will be under instructions to appoint a solicitor if they aren't paid. The reason is if you couldn't pay then eventually they will take court action to recover the service charges, but that is along way down the road.

rpc

There isn't necessarily a managing agent and nothing OP has said indicates whether there is or is not one (although if there were it is unlikely the freeholder would be doing this himself).

Have a read about ground rent here:
http://england.shelter.org.uk/get_advice/leaseholders_rights/ground_rent

These parts are particularly relevant:

You are not legally liable to pay the ground rent unless the freeholder has formally demanded it.

The demand must be written and must include certain information to be valid

You might also find LEASE to be useful, such as this question http://www.lease-advice.org/information/faqs/faq.asp?item=176

You are not liable to pay ground rent unless the landlord has demanded it using the prescribed form.

With the prescribed form and other useful things being on that page and elsewhere on their website.

You could contact LEASE for further advice http://clients.lease-advice.org/Default.aspx

nidO

rpc wrote: »

There isn't necessarily a managing agent and nothing OP has said indicates whether there is or is not one (although if there were it is unlikely the freeholder would be doing this himself).

The very first line of the letter the OP has quoted specifies there is a managing agent, and it is that agent the solicitor is acting for.

OP, my answer to this would be simple. I would reply to the letter you have received with a cheque for £1169.36 (which is presumably the outstanding ground rent shown on the statement sent with the letter).
With this would be a covering note stating that as the statement sent with the letter is the very first contact you have received from either the managing agent or freeholder requesting payment or providing details of the amount outstanding it is not appropriate for them to be incurring additional fees as they should have sent the statement directly to you for payment, so you won't be paying their additional costs, and that presenting the cheque for payment will be deemed as their acceptance of this.

rpc

nidO wrote: »

The very first line of the letter the OP has quoted specifies there is a managing agent, and it is that agent the solicitor is acting for.

Ah OK, I can't see whichever image it is (and didn't realise there was one) because it will be blocked by a firewall. That's what I get for browsing at work

OP, my answer to this would be simple. I would reply to the letter you have received with a cheque for £1169.36

I wouldn't send payment, but tell them that you will pay once you have received a demand that complies with the statutory requirements. Point out that, by law, no ground rent is due until proper notice is received.

They haven't served proper notice, so still no ground rent is due. (NB I assume this letter and statement doesn't look like the prescribed form, it doesn't sound like it)

Don't put up with this amateurish behaviour. Make them do it properly or they will just keep mucking it up and charging you costs that aren't yours to pay.

Summer-Sunshine_2

Are you living in the flat now? Or are you renting the property out?

Owlish

Thank you all - your posts prompted me to phone the Lease Advisory Service (how brilliant are they?!!!!) and so I have prepared a letter to send (with a cheque for the amount due minus the additional fees, as that would show willing on my part if it goes to tribunal) and shall let you know how it goes! Thanks again - your replies really are very much appreciated.

Pete9501

nidO wrote: »

OP, my answer to this would be simple. I would reply to the letter you have received with a cheque for £1169.36 (which is presumably the outstanding ground rent shown on the statement sent with the letter).
With this would be a covering note stating that as the statement sent with the letter is the very first contact you have received from either the managing agent or freeholder requesting payment or providing details of the amount outstanding it is not appropriate for them to be incurring additional fees as they should have sent the statement directly to you for payment, so you won't be paying their additional costs, and that presenting the cheque for payment will be deemed as their acceptance of this.

I think this is better advice rather than getting everyones back up. What you want is to pay the bill and have the extra ignored not turn it into a feeding frenzy for the solicitors.

Pete