Ground rent through a 3rd party? Simarc trying it on? 24 November 2016 at 10:34AM edited 24 November 2016 at 11:20AM in House Buying, Renting & Selling 7 replies 448.6K views

ben306

Hi All,

New to the forum and hoping I can get some help.

I've had an letter from a company call Simarc. Having checked the website, it doesnt look very professional.

They are apparently the collection company for my ground rent. I've been in the house 18 months and this is the 1st time I've had anything from them. The ground rent is £12 a year and they want £18 which is right for how long I've been in the property, but this company want a further £60 ground rent collection cost.

There are a few things that don't ring right for me. The number you call is just an automated thing. They dont have the correct postcode. They have attached the original letter which is actually addressed to the previous owners. They mention a Wallace Estates Ltd as being the landlord so why cant I just pay them direct?

Any help or advise appreciated.

ben306

I've just looked at this Wallace Estates and it appears Simarc are a subsidiary of them, therefore arent they trying to double bubble with the collection cost fee they are trying to enforce?

eddddy

As a starting point, read your lease to see if it allows the freeholder (or their agent) to charge an admin fee for collecting ground rent..

and/or

Ask the agent which clause in the lease they are relying on for applying the £60 charge.

(But perhaps pay the £18 ground rent, if you agree it's due.)

martindow

Is the ground rent overdue? If so they may be using their subsidiary to do the chasing. I would pay the ground rent directly to the LL.

ben306

I don't believe the ground rent is overdue from what I can see in the limited paperwork they have sent me.

I'll have a check of my lease tonight

G_M

Ground rent is never due until/unless it is demanded.

Is this the first demand you've received?

Since it is addressd to the previous owner, were the freeholders properly informed of your purchase?

http://www.lease-advice.org/


My landlord has not demanded ground rent. What should I do? Ground Rent

Can my landlord increase the ground rent? Ground Rent

My landlord has not demanded ground rent for several years. Can he still demand it? Ground Rent

Am I liable to pay arrears of ground rent that accrued prior to me purchasing the property? Purchase/Sale

ben306

Had a look through the lease, its just the original one from back when the house was built in the mid 60's. Showing the rate of £12/year.

No mention of the company that's sent the ground rent demand. and I cant see anything in there about being able to charge for a collection fee etc but its all written in old legal eagle!!!.

I am assuming the ground rent has been sold onto this company.

I know its not a massive amount we are talking about but I dont like to feel I am getting ripped off.

eddddy

So ask them which clause in the lease they are relying on to charge you £60.

The may come back with some very plausible, sensible reasons for charging you £60 - but if it isn't stated in the lease (or in some other contract which you have agreed to, or in some piece of legislation that overrides the lease), you don't have to pay it.