Ground Rent/Service charge demand from solicitor - please help!

paulinetc

Good afternoon,
I wasn't sure where to post this message, but thought this forum would be a good start, or to at least get a point in the right direction.


I have received a letter from a solicitor on behalf of my property management company asking for a paying of £1.7k for arrears on the ground rent and service charge, plus all sorts of fees and charges that will accumulate on top of this.


I have spoke both with the solicitor and property management company about coming to an arrangement to pay over a certain period of time but they are not willing to accept this. The only option they are giving me is 3 months and nothing longer (ideally, I need about 24 months!).


Another option they have given me is for my mortgage company to pay the arrears on my behalf, which Nationwide have agreed too. However, this does need authorization from both parties named on the mortgage and my ex partner that left me in this situation will not agree to this as it will impact his credit file. So therefore this isn't an option for me to take.


So here is the situation (very briefly). I am in a property and struggle to keep my head above water month after month. I was used and left do deal with this property by an ex partner who refused to sell it and has never paid a penny towards it since the exchange of contracts. Basically, I was used so that he could get the mortgage on this particular property as he couldn't get it on his own and as soon as the paper work was complete, I was dumped and left with no where to go expect the new build property and have been struggling and getting myself into a vicious circle of debt just to survive and have to even enter onto a DMP now.


He refused to sell and makes no contribution at all to the property or mortgage each month, and is just waiting until the price is right to sell it and walk away with his share. I have been paying the ground rent and service charge each month, but, there are times when I've skipped a month because I can't afford it and nothing ever seemed to happen. Now the solicitors are claiming for all payment arrears going back to 2014. I know this is my own fault, and the outstanding amount needs to be paid (unless someone knows otherwise?!), but what I would like is some advice on how I can get them to accept a payment plan that is within my budget each month. They will not accept any longer than 3 months.
Can anyone help at all? I really am stressed about this situation and have no where else to turn.
thanks.

Boatdweller

Your ex probably will want to help pay the ground rent and service charge arrears once you spell out to him that he could lose the whole flat and not get anything as the lease is being breached and one of the penalties of that is forfeiture...

sourcrates

Hi,


What a horrid situation for you to be in, it seems this house is really unaffordable to you as things stand.

You could repay the arrears to them at a rate you could afford, weather they like it or not, however, when they appear to be a bit bolshie on the phone, these company's tend to moderate there stance when you put your proposal in writing.
Worth a try in my opinion.


They could take legal action against you and repossess the house, if they were not happy with this though.

Is there anything stopping you handing the keys back and cutting your losses ?
That would get you out of this current mess, but could leave you with a shortfall to pay back.


Your options are really limited here to be honest.

AnotherJoe

Tell him either he pays or you will just walk away right now which will leave him with legal fees, a charge against him, and likely minimal equity once legal fees etc are taken into account.

I dont see what you've got to lose, as you explain it you are paying everything so he can get a share of the equity and what you are paying likely will cancel out the equity you get anyway so in effect you are making your payments to him. Plus you will go under if nothing changes, so what have you got to lose?

nkkingston

Tell him you'll let them repossess the flat if he doesn't help out - that'll leave a much worse mark on his credit file!

paulinetc

Thanks for all the responses. It is really is a rubbish situation to be in, but I have no where else to live. If I up and leave then I have no where to go and my credit rating has been damaged so much from struggling with this property that I doubt I'd pass any credit checks to get a little place to rent out! Plus I need my share of equity in the property not to be damaged.
I have emailed him and asked for his consent to get the arrears paid by the mortgage provider. As I'm paying the mortgage I'd be paying it anyway! If he refuses then I will ask him for the money (you never know, he may offer it!). Stranger things have happened.

AnotherJoe

but I have no where else to live. If I up and leave then I have no where to go and my credit rating has been damaged so much from struggling with this property that I doubt I'd pass any credit checks to get a little place to rent out! Plus I need my share of equity in the property not to be damaged.
=======
But as you are spiralling further into debt, arent you going to be in this situation soon anyway? You'll be chucked out and have nowhere to live.

At the moment you are paying everything and you cant afford that, which means when you do eventually get repossessed you'll be in an even worse situation with your equity wiped out as well due to all the extra charges and the house likely being sold at a knock down price.

tallyhoh

any chance of getting a lodger?

paulinetc

You are correct. I need to get this sorted asap. I can't go on struggling like this alone.

I have got myself a lodger which does help, but I'd need a few more yet to help me get out this hole!

I'm going to speak to CAB and national help debtline tomorrow.

bouncydog1

Sorry but I don't understand why you are paying all of the mortgage and will be letting him take half the profit when the property sells. You can't afford to live this way. If you stop paying the mortgage, nationwide will chase both of you for repayment. I would write to him and tell him that you are going to do this. Would also be worth seeing if you could get a free session with a lawyer to fully understand the position. Awful position to be in, but you really can't continue like this.

Soundgirlrocks

I'm a director for our management company, forfeiture would highly unlikely.

You can find more information here http://www.lease-advice.org/information/faqs/faq.asp?item=233 but key points are they will need to get a section 146 notice and "If the breach relates to arrears, you cannot serve a valid section 146 notice where the amount of service charges, administration charges or ground rent owed (or a combination of all of these) total less than £350, or have been outstanding for less than three years. It is not necessary to serve a section 146 notice if the breach is for ground rent arrears."

So the priority is to clear the ground rent arrears asap then the service charge. Assuming this started mid 2014 you have till mid 2017.