Late Payment Charge

Markw

I have a recurring annual problem with a property management company claiming late payment charges for ground rent.

Every year the first notification I receive for payment includes a late payment charge of £32.75 claiming that I have not paid a previous application, which I never receive.

They state that unless payment is made I will incur legal costs of £74.40.

Where do I stand with this?

I am concerned that if I pay the Ground Rent and do not include the "late payment fee" I will then incur the additional £74.40 if they chase the additional amount asked for?

Caz3121

Markw wrote: »

Every year the first notification I receive for payment includes a late payment charge of £32.75 claiming that I have not paid a previous application, which I never receive.

They state that unless payment is made I will incur legal costs of £74.40.

Where do I stand with this?

what date is the payment due? does the payment change each year? (do you need to wait for details of the amount before you are able to pay or do you know in advance the figure?)
What does your paperwork show re ground rent late payments?

Markw

Payment was due 25th December but I did not receive notification.
I could pay without notice.
Paperwork states that Landlord may be able to claim additional sums if you do not pay by the date on the notice (but I didn't receive the notice)

eddddy

Caz3121 wrote: »

what date is the payment due? does the payment change each year? (do you need to wait for details of the amount before you are able to pay or do you know in advance the figure?)
What does your paperwork show re ground rent late payments?

Ground Rent amount and due dates will be shown in the OP's lease.

There's a whole bunch of legislation around this. For example, as LEASE says:

Since the 28th February 2005 any demand for ground rent by a freeholder, or their managing agents, must be made in a "prescribed form"; as set out in Section 166 of the Commonhold & Leasehold Reform Act 2002.

If the ground rent is not demanded in this prescribed form, and completed in accordance with section 166, the tenant (leaseholder) is not liable to make payment unless, and until, it is properly demanded.

Link: https://www.lease-advice.org/article/ground-rent-a-demanding-notice/

So the key question is "Did the management company actually demand the payment in question (in the prescribed form)?"

If they did, £32.75 might be a 'reasonable' administration charge for dealing with a late payment. (Because The Landlord and Tenant Act 1985 says that an Admin Charge can only be recovered if it is 'reasonable'.)

If they didn't demand payment, it's not payable - and therefore, no late fee is payable.


If the management company insist they sent you the notice, but you insist that they didn't, I guess you'll need to challenge the late fee at a tribunal.
See: https://www.lease-advice.org/faq/what-can-i-do-if-i-disagree-with-an-administration-charge/

DoaM

Does the paperwork state that a notice will be sent every year? If not then you're late in paying; if yes then you pay the amount owed and dispute any claim for additional charges.

Does the amount change every year, or is it fixed until a specified increment period (e.g. doubles every 10 years)? (You seem to have overlooked this part of post #2).

winspiration

Can you not set up a standing order if the ground rent is the same amount each year?

LadyDee

If you know it's due 25th December why do you have to wait for a Notice? If it's the same amount, set up a SO, if not then a DD.

Markw

Yes indeed I will setup a SO. However, as a rule I have no problem with paying bills on time, when I receive them, and I am convinced that the Landlord can't be bothered to send out demands and hands it over to a management company who send out a second demand and the tenant gets saddled with the cost. My suspicion is further endorsed by the fact that they state at the bottom of the demand they would be pleased to discuss the matter but they don't answer the phone whenever I have tried to call at various times of the day to query it.
It doesn't seem unreasonable that they should send me a demand and it is most irritating that they will get away with it because I can't prove I didn't receive one.

eddddy

Markw wrote: »

...I am convinced that the Landlord can't be bothered to send out demands and hands it over to a management company who send out a second demand and the tenant gets saddled with the cost.

So if you can find lots of other leaseholders who say that they didn't get a demand either, you've probably got a very strong case.

(FWIW, it would be strange for the freeholder/landlord to send out the initial demand, then ask the management company to send second demands. More usually, the management co would send out both first and second demands.)