Ground rent arrears - now significant charges

Mikejg

1) I own the property, have done since November 2015.
2) The property has always been let out as I currently work in a different area. I bought in central Birmingham as I used to live there, loved the place, want to live there.
3) Paid all service charges on time, assumed Ground rent was same company and all in. It isn't.

So my tenants have never alerted to mail arriving for me, or the "occupier". So i've no evidence if letters were received, addressed to me, or the occupier, for any ground rent since buying. It's due on 1st Jan each year. So I'm 3x £150 behind. It's my own fault.

However, finally I hear after a registered letter arrives and the property concierge emails about it. Literally the first I've heard, it's not a valid excuse, i know. But, first time.

They've charged £160.85 interest. Okay, given what the leasehold says that's wrong - it's £79 or so (1 x 793 days, 1 x 426 days, 1 x 63 days overdue @ 15%).
They've charged £162.00 transfer fee (I assume for putting my name down?). Still trying to find in leasehold agreement about this charge!
They've charged £468 in arrears fees. There's no breakdown, i've no idea what they've supposedly done...
The solicitors are charging £480 for the solitary letter they've sent out.

The total is £1720.85 for a £450 ground rent (+£79 interest).

I will contact the solicitor tomorrow to quibble over the arrears fees (what are they, why are they charged). The leasehold does include the terminology of "to pay all reasonable and proper costs, charges and expenses (including reasonable and proper legal costs and fees payable to a surveyor and any VAT on the same incurred by the lessor in any proceedings or the service of any notice under sections 146 and 147 of the Law of Property Act 1925..... such cost charges and expenses shall be paid whether or not forfeiture for any breach shall have been avoided otherwise than by relief granted by the court.

The cover letter simply states "Simarc has written to you on a number of occasions concerning your arrears".

Can £468 be viewed as reasonable for what is allegedly several letters? (will try to find out tomorrow, heard horror stories of simarc now about getting information). Is a solicitors letter really £480?!

What should I do? I have a form where I can enter that I owe some of the debt, not all, and outline why. I am willing to contest the charges to a tribunal - and am more than willing to pay the rent, the interest (and the transfer fee if applicable), but the charges are insane for what appears to be admitted as a series of letters only (now one from a lawyer). They're threatening legal action in court if I don't pay up.

Are the charges reasonable, should I just bite the bullet and pay the amounts? Anyone with any experience of contesting these charges and how they faired? or been to a tribunal and advice on what I'd need to have?

Any comments welcome. I am fully aware "Its your own fault" as there's no valid excuse such as "I never got the letter". But i've no proof they ever sent out the "not more than 60 days before rent due date, not sooner than 30 days before rent due date, a notification of specific format must be sent to the tenant", so ... lost.

Thrugelmir

Mikejg wrote: »

Any comments welcome. I am fully aware "Its your own fault" as there's no valid excuse such as "I never got the letter". But i've no proof they ever sent out the "not more than 60 days before rent due date, not sooner than 30 days before rent due date, a notification of specific format must be sent to the tenant", so ... lost.

What does your lease say with regard to letting out the property?

eddddy

The The Landlord and Tenant Act 1985 says administration fees (including late fees) must be 'reasonable'. i.e. they must reflect the time spent and costs incurred by the freeholder (or their managing agent).

I've seen one case, where a tribunal seemed to accept that £50 per hour was a 'reasonable'.

So I would ask them for the following:

• A breakdown of the time they have spent dealing with chasing your late payment
• Their hourly rate for their time
• A copy of the invoice from their solicitor showing that the solicitor charged them £480 for sending you the letter

Maybe make an offer of what you think is reasonable (explaining why you think it is reasonable).

Also, maybe say that unless they charge a more reasonable fee, you will pay 'under protest' and challenge the fees at a tribunal.


Edit to add...

As an indication of the reasonable fee for a solicitor's letter - my solicitor quoted me £60+vat for sending a 'scary' letter in relation to a claim for payment, a year or two ago.