Proof of Nuisance by Freeholder-Forfeiture

LeoLego

We have had years of issues from our freeholder who is unfortunately also our right to manage company and neighbour.

We have complied, even giving him access to our property weekly for a year, to fix some damages from previous leaseholders. They had apparently paid him a lump sum on selling to amend the damage.

Numerous incidents have occurred including the individual being aggressive, demanding immediate payment for non critical works and contacting us daily by email and phone when they do not get their own way.

A few months back we received a solicitor letter stating this individual was in bad health and the Management of the property would be looked after by himself. As we were paying management fees to the individual, we believed this cost would be covered.

From there we were then demanded to fix a window seal, which we did and also that the sinking fund payments would be doubled. Which we contested as there has been no evidence shown to us to prove that the demanded work needs competing, We would be happy to pay this is we knew it was not simply a project for the bored freeholder.

Now the solicitor is stating we must pay his legal costs (which are extortionately high per hour) and pay for the freeholders time spent disputing our disagreements. They have even threatened forfeiture of lease and the payments to increase if we do not pay quickly.

We cannot see how we have contributed to the freeholder needing a legal service as we agreed to completing the work prior to him being appointed. In terms of the sinking fund we are merely asking for our legal right, under section 20, to have evidence of intended work and have it go to a bidding process with contractors.

The freeholder has never shown us any evidence of the work he asked us to complete, he has not shown us receipts etc in support of his yearly statement and he has threatened us, not behaving in a good workmanlike manner. If anything we feel he has breached his covenant as a freeholder.

We do not have the money to pay the solicitor within week nor do we have money to afford our own solicitor. We feel we have been fair and have email evidence to prove that we have complied.

Are we naive to think we are in the right? Can he claim legal fees even though we have given him no necessity to engage them (the first solicitor letter states he is in place due to freeholders ill health)? Can they request anything from us when no correct legal procedures have been followed? Is it correct we have still been paying our management fees to the freeholder event though he is not dealing with the property management?

Any help would be greatly appreciated..

G_M

leaseadvice

LeoLego

We have researched it for some time but are struggling to pin this onto a set law

starving_artist

As G_M says speak to an advisor at the Leasehold Advisory Service. They will tell you what your rights are, what procedures should be followed by both sides and which laws apply. You will need your copy of the lease which you should read thoroughly as it may answer questions like whether or not you have to reimburse the freeholder's legal fees arising out of a dispute.

cloo

I remember panicking about forfeiture (though it was never threatened) when we had a dispute with our freeholder, but I couldn't find any evidence that any leaseholder had ever actually had their lease forfeited, so I wouldn't worry about that. Best of luck with Leasehold Advisory - leave plenty of time to call, you may be on hold for a while, but they will be very helpful.

eddddy

Regarding your comments about service charges etc - this page answers many of your questions: http://www.lease-advice.org/advice-guide/section-20-consultation-for-private-landlords-resident-management-companies-and-their-agents/

A few specific quotes:

Service Charges must be reasonable...

2.4 Limits on service charges

Service charges can go up or down without any limit, but the landlord can only recover those costs which are reasonable. Leaseholders have rights to challenge service charges that they feel are unreasonable at the Tribunal

Does your lease say the freeholder can create a sinking fund? If not, the freeholder can't... And contributions must be reasonable...

2.5 What are reserve or ‘sinking’ funds?

Many leases provide for the landlord to collect sums in advance to create one or more reserve or ‘sinking’ funds.
...
Leases sometimes say how much is to be contributed each year, but usually they do not and it is left to the landlord to determine the contributions. However, they must be reasonable and, because these are just like any other service charges, leaseholders have the same rights to challenge these charges, if they believe they are unreasonable, at the Tribunal.

Solicitors fees and management fees are only recoverable if it says so in your lease - and they must be reasonable:

2.5 The power to recover service charges

• management costs: the fact that the landlord manages the building, either himself or through a managing agent, does not automatically mean that he can recover management charges.
  This must be provided for in the lease. The lease may specify a percentage, or may just refer to a ‘reasonable’ amount.
  
• legal costs: as with management costs, these must be referred to in the lease. If recoverable, they can include the cost of recovering arrears or for repossession in case of another breach of the lease.

The general principle of a lease is that the landlord is not obliged to provide any service which is not covered by the lease, and the leaseholder is not responsible for payment where there is no specific obligation set out in the lease.

Ask the freeholder in writing for copies of receipts (it's a criminal offence not to provide them)...

3.4 Rights to further information (inspecting accounts and receipts) (Section 22 Landlord & Tenant Act 1985)

As well as receiving the summary, the leaseholder has the right to inspect documents relating to his service charge as a follow-up to provide more detail on the summary. Within a period of six months from receipt of the summary, the service charge payer (or the secretary of a recognised tenants’ association) may write to the landlord requiring him to allow access to and inspection of the accounts, receipts and any other documents relevant to the service charge information in the summary and to provide facilities for them to be copied.

...

Where a landlord fails without reasonable excuse to comply with either a request for a summary or to inspect supporting documents they commit a summary offence on conviction and are liable for a fine of up to £2,500

moneyistooshorttomention

I must admit I am wondering what the nature of this illness the freeholder has is - ie whether it's not of the physical variety. He does seem to be acting distinctly illogically.

I'll admit I would be asking this leasehold service what safeguards there are against freeholders that aren't thinking/acting logically. It must happen sometimes - ie that an illness a freeholder has is affecting the way they act towards other people....

Are you keeping a diary? - because, from where I'm standing, what he is doing to you is harassment and I would be googling for details of the Protection from Harassment Act and wondering whether to take out an injunction preventing him from coming within a certain distance of you.

He certainly seems not to have heard that there is a law giving people the legal right to "peaceful enjoyment" of their property.

LeoLego

If I am fully honest, we are quite happy there is more than physical illness and that this leads into addictions and mental illness.

We started to look into harassment but we felet all we had were emails and this may not constuture enough evidence.

The issue we have is he is the management company and freeholder. He is pretty much holding us to ransom at the moment.

Thanks for all your advice. I think we will ask for statements and receipts (I do not believe they will add up) then possibly go to 1st tier tribunal to recover our costs.

The solicitor he has engaged is now saying he will continue as a management company for us and that we must pay £250 an hour for his services.

It may be starting to get to the point that legal help will cost less than what he is holding us to pay.