simarc charging "additional rent"

KieronThomas

Hi all,

Recently I had my first demand for ground rent since buying my flat in April last year (2014) to the tune of £1123.36 and funny enough it was 3 letter all with different dates arriving on the same day.

I felt that's was an instance ammount so I did a bit of digging. I found on my lease paper work I pay £100 a year in ground rent (completely normal amount) and £693 a year in "additional rent". I check the whole document as well as anything else that was regarding the lease and nothing says what this "additional rent" is. As i failed to notice it in the paper work i am not fighting paying it and have managed to setup a 3 month payment plan to pay what i owe.

I tryes finding out what additional rent is and all i could find online is a service charge. This can not be possible as i pay belmount properly management the service charge which they detail in writing every year. I have requested simarc provide me with the definition of this "additional rent" and provide a break down od the costs per year this pays for. There response was to call it "additional ground rent" and remind me i have to pay it.

Has anyone come across this before? Also if anyone can point me to any official source detailing my rights that i can use if simarc keep not compiling with my request.

Thanks for any and all reply's

G_M

Could it be unpaid back-rent?

Was the ground rent up to date when you bought?

Have you written to them to ask for a breakdown, and explanation?

I would also refer to the fact that all 3 letters came together, since it sounds like they might be claiming you failed to pay when you received the 1st two demands.......

KieronThomas

Hi thanks for responding.
This is not unpaid ground rent it is list as "additional rent" in the lease paper work.

I have requested a break down they did not prove me any information. All 3 letters where not claiming I had failed to pay they did however send a another letter dated 2 days before I reserved the demand for payment adding £300 in ground rent arrears. They have dropped this fee after being informed all 3 letters arrived on the same day and thee 4th being dated 2 days before I had there demands for payment.

G_M

Ah! I misunderstood.

So the lease lists two items due for payment:
* rent
* additional rent ?

Can you quote the exact wording in the lease please?

It's also worth looking to see if there is a 'definitions' section (at the front or back?).

Richard_Webster

Did your solicitor not explain this to you when you bought the place?

If it is "real"rent and not some form service charge then it will make quite a difference to the value of the property.

KieronThomas

I'm at work untill 5pm. When I get home ill quote the lease paper work.

I do not recall any conversations about additional rent I was however sent a photocopy of the lease paper work before completing the sale making me legally aware I just failed to notice it.

KieronThomas

4th page Lease of Part
"the Additional Rent". £693.00 (Six hundred and ninety three pounds) a year


Definitions page 6 item 1.7
The Rent. The Ground Rent and the Additional Rent


Second Schedule page 11 item 1.1
To pay the Land lord the Ground Rent in two equal amounts in advance on 1 January and 1 July in each year without deduction of set off by direct debit or standing order as the Landlord may direct


Item 1.3
To pay the Landlord the Additional Rent in twelve equal amounts in advance on 1st day of each month in each year without deduction of set off by direct debit or standing order as the landlord may direct.


Item 1.4
The addition Rent of £693.00 shall be increased every twelve years from the commencement of the Term in line with Average Earnings as published in the New Earnings Survey (or any other index or survey replacing it) using the formula a divided by b multiolied by £693.00 (a/b x 693)


Where:-


a = the latest published survey figure and


b = the latest survey figure published before 1 January 2006 (as varied by any subsequent alteration in the method or preparing the survey)

KieronThomas

if more detail is wanted I can run it through the scanner at work

G_M

I assume there are also separate clauses covering service charges or maintenance payments or similar?

It appears as if the annual ground rent is the sum of these two amounts, one of which is payable monthly, and the other payable 6 monthly.

KieronThomas

Yes the service charge has separate clauses.


maybe the fact there only separate sub clauses leaves a little hard to tell

TrickyDicky101

My take would be that the additional rent imposes an onerous escalation clause on the leaseholder and would certainly impact on the value of the lease. Assuming strong avg earnings growth over the next 3 years (not implausible although not guaranteed), you could well find your additional rent component increasing by c.50% pa from 2018.