Freeholder service charges

CaZzie

I have owned a freehold house on a small estate for 20 years, my transfer document states that I pay a small percentage of communal charges. However, in the 20 years, I have never received any accounts or an invoice to pay any fees.
However, I have just received an email from the managing company stating that I owe £2k, for the last 20 years. The area on the land that belongs to the house and never been tended to by the gardeners.
Where do I stand?

rachel230

Who is requesting this?
What name was on the original transfer document? Is it the same name as whoever is now requesting payment? Often "rights" are sold on and new owners trawl through paperwork sending out all sorts of demands wily nily on the off chance that some will bite e.g. trying it on. My understanding is that service charges - you mention grass cutting - can not go back more than 6 years anyway.
If no service has been provided, they cannot charge you.
Sounds like a try on to me!

phill99

rachel230 wrote: »

Who is requesting this?
What name was on the original transfer document? Is it the same name as whoever is now requesting payment? Often "rights" are sold on and new owners trawl through paperwork sending out all sorts of demands wily nily on the off chance that some will bite e.g. trying it on. My understanding is that service charges - you mention grass cutting - can not go back more than 6 years anyway.
If no service has been provided, they cannot charge you.
Sounds like a try on to me!

That's wrong.
The fact that money is owed and the fact that a service has not been provided are two different things.
The money is owed through an obligation brought about via land ownership. The money is still owed. This would be enforced by that courts.
The lack of grass cutting etc is a contractual matter between the management company and the contractors.

herbz100

Interesting as I’m going through a similar situation. Look into the 18 month rule, 20B but not going back 20 years like yourself.

eddddy

herbz100 wrote: »

Interesting as I’m going through a similar situation. Look into the 18 month rule, 20B but not going back 20 years like yourself.

The 18 month rule applies to service charges for leasehold properties.

The OP has a freehold property - so it doesn't apply. Freeholders have less protection than leaseholders.

rachel230

Yes seems at worst 18 month rule applies (was the demand correctly sent?)

https://www.devonshires.com/ask-the-expert-recovery-of-historic-service-charge-arrears/

With regard to having to pay when they know..and you know..that the work wasn't done and you are paying them for nothing whatsoever I would not be in any rush to pay them. Call LEASE the free government service for advice (book 15 minute free phone call on line),.
Boy - do we need regulation!

anselld

CaZzie wrote: »

The area on the land that belongs to the house and never been tended to by the gardeners.
Where do I stand?

The land belonging to the house would not be tended anyway. The charge is for the communal areas, pathways, etc on the estate. Since you refer to "the Gardners" they must have done something.

I would agree that the general 6 year limitation on debt applies, not the 18 month limit which applies only to leasehold service charges.

anselld

rachel230 wrote: »

Boy - do we need regulation!

There is already plenty of legislation plus the First Tier Tribunal to resolve disputes. More bureaucracy is unlikely to improve things.

eddddy

Unfortunately, there's a lot of incorrect information in this thread.

To clarify... As you are a freeholder (not a leaseholder)

• The 18 month rule doesn't apply

• You don't have the option to go to a Tribunal

• LEASE probably won't be able to give you any advice

I'd guess that your liability for service charges is because of a 'deed of transfer' that you signed. That deed should state:

• What costs you have to contribute towards

• The proportion of costs that you have to pay

So check the bill you've received against that deed.


(My guess would be that the bill is nothing to do with gardening, as nobody would do gardening for 20 years with no payment.

I suspect it will be something vague like an 'administration fee'. i.e. Even though no maintenance has been done for 20 years, they're claiming some admin work was done behind the scenes.

But they can probably only claim back 6 years.)

AdrianC

The most any commercial debt can be chased for is six years.

Within that six year period, you're liable for any debt you can be shown to have legitimately owed - whether you were invoiced at the time or not.

If the charge is due for the management of the common parts of the estate as a whole, then whether the grass outside your house got cut or not is irrelevant.

If you didn't want to contribute to the upkeep of the common parts of the estate, you shouldn't have bought a house which included that obligation.