Help with ideas for dealing with legal action for ground rent

G_M

littly_kitty wrote: »

One more question: What's the correct way to handle a [STRIKE]ground rent [/STRIKE]management company or freeholder when they don't do what they are supposed. And does one have a right to buy the land off them?

See the government advice service: https://www.lease-advice.org/

Specifically re service charges:

https://www.lease-advice.org/advice/find-the-right-information-for-you/?step-option=61


or re buying the land(freehold):
https://www.lease-advice.org/advice/find-the-right-information-for-you/?step-option=61

littly_kitty

Where would my uncle find an agreement that details that he was liable for service fees in the first place? As part of the court documentation, they have sent the official copy of register, but it doesn't mention that he was liable for the fees in the first place.

Obviously, he would be liable for them, but it would be handy to read to see if they set out what the fees are for and if they list what the penalties for late payments are.

eddddy wrote: »

Just to be clear, is this...
a) a court claim for a debt?
or
b) the freeholder making a claim for forfeiture of the lease, due to non-payment of service charges?

On the court document, the claimant is listed as the management company and the mayor of borough where the flat is located. The claim is for arrears due under the lease.

As I understand, the ground rent was always paid on time. It was just the service charge that was withheld for the work that wasn't completed. When the work was completed, the service charge was paid in the wrong account and now has been paid in the correct account. The only thing that is outstanding is the admin fees for the late payment.

G_M

littly_kitty wrote: »

Where would my uncle find an agreement that details that he was liable for service fees in the first place? As part of the court documentation, they have sent the official copy of register, but it doesn't mention that he was liable for the fees in the first place.

Obviously, he would be liable for them, but it would be handy to read to see if they set out what the fees are for and if they list what the penalties for late payments are.

On the court document, the claimant is listed as the management company and the mayor of borough where the flat is located. The claim is for arrears due under the lease.

As I understand, the ground rent was always paid on time. It was just the service charge that was withheld for the work that wasn't completed. When the work was completed, the service charge was paid in the wrong account and now has been paid in the correct account. The only thing that is outstanding is the admin fees for the late payment.

Youneed to read the lease which will specify who is responsible for undertaking works, who is responsible for paying for those works, and how.

eddddy

littly_kitty wrote: »

Where would my uncle find an agreement that details that he was liable for service fees in the first place? As part of the court documentation, they have sent the official copy of register, but it doesn't mention that he was liable for the fees in the first place.

Your uncle's lease is the legal agreement that specifies what he must pay for through his service charge.

Service charge demands will show the precise amount payable.

littly_kitty wrote: »

Obviously, he would be liable for them, but it would be handy to read to see if they set out what the fees are for and if they list what the penalties for late payments are.

These won't be penalties (penalties would probably be unenforceable), they will be admin charges for late payment. Unless the lease says otherwise, the freeholder can charge 'reasonable' admin fees.

So...
- If it was 'reasonable' for the freeholder to instruct debt collectors
- and the fee charged by the debt collectors is 'reasonable'

... your uncle probably has to pay the freeholder whatever fee they were charged by the debt collector, plus the freeholder's own 'reasonable' admin costs.

littly_kitty

eddddy wrote: »

Your uncle's lease is the legal agreement that specifies what he must pay for through his service charge.

G_M wrote: »

Youneed to read the lease which will specify who is responsible for undertaking works, who is responsible for paying for those works, and how.

What's the best way to get hold of a copy of the lease. Would asking the ground company be the best way? Thanks!

G_M

littly_kitty wrote: »

What's the best way to get hold of a copy of the lease. Would asking the ground company be the best way? Thanks!

He should have been given a copy when he bought the lease.

His conveyancer from his purchase might have kept it or a copy.

In some (few) cases, the Land Registry have a copy.

The freeholder and/or their management company should have a copy.

littly_kitty

One more question: Now that my uncle has got a letter about Court Action, does that means he has a CCJ against him? Or will he only get that if he loses the cases in court? If he does have CCJ against him, then will it be removed if he wins the case? Also, how will this letter affect his credit rating as I think he was considering applying (or may have already applied) for another mortgage on a different property.

Comms69

littly_kitty wrote: »

One more question: Now that my uncle has got a letter about Court Action, does that means he has a CCJ against him? - obviously not. Or will he only get that if he loses the cases in court? - incorrect; if he loses AND doesn't pay, then a CCJ is registered If he does have CCJ against him, then will it be removed if he wins the case? N/A Also, how will this letter affect his credit rating - N/A as I think he was considering applying (or may have already applied) for another mortgage on a different property.

It's simple, and im sorry but there seems to be a huge list of errors.


1: Settle the matter before court. They've claimed a sum, so just pay it.
2: Sort out the Landlord issues, because there's a huge number of responsibilities.

AdrianC

littly_kitty wrote: »

One more question: Now that my uncle has got a letter about Court Action, does that means he has a CCJ against him? Or will he only get that if he loses the cases in court?

The clue is in the initials - County Court Judgement.

A letter before action says "If you don't pay now, we will take you to court."
He gets taken to court and wins, he owes nothing.
He gets taken to court and loses, he can pay there and then - and not have a CCJ recorded against him - or continue to fail to pay - and have that CCJ recorded.

Also, how will this letter affect his credit rating as I think he was considering applying (or may have already applied) for another mortgage on a different property.

An LBA won't, because it's not recorded anywhere. Nor should it be. I could send you an LBA tomorrow that says you owe me £9,999.99k for something I just made up. I could launch a small claim for that £9,999.99 - all I need do is pay the small fee. If it does go to court, then of course I won't win - because I have zero credible evidence you actually owe it.
But if you were to fail to lodge a defence, I win by default. If you fail to pay, you will have a CCJ.

If you didn't lodge the defence because of a valid reason, say you were on holiday, you could apply to have the judgement set aside and the case re-heard.

A CCJ will affect his ability to borrow - would you lend money to somebody with a legally-proven track record of refusing to pay...?

bouicca21

If he is having this much problem understanding his obligations as a leaseholder and the court process, plus probably as a landlord, maybe he should be dissuaded from entering into a new mortgage.