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Service Charge Arrears
Buzyizzy
Posts: 71 Forumite
Not quite sure what happened to my last post, so apologies if it's around. Blooming arthritic fingers.
I started my own business back in July and consequently received no help from the government when the lockdown began. I am now on UC but as everyone knows, it's not enough to live on. My service charge was due end of March, but the money I had set aside for it I used to live on for five weeks until my UC started. I am due an HMRC refund very shortly, and I have offered to pay half of the bill as soon as I receive my refund, paying the remainder after that in stages. I am only able to offer that if the lockdown is sufficiently lifted to enable me to start back to work as a home help, and obviously money and business will be slow to start. The management company are insisting that I settle it all by the end of June, but I am likely to only be earning about an extra £100 a week and my other payment holidays are ending in July. I was earning £1500 a month before all this and was making big inroads into repaying all the money I borrowed whilst my business was growing, but this lockdown, although completely necessary and I not against it at all, has been disastrous for me. I'm aiming to pay the charge asap, but there's only so far that the money will go. I don't pay rent or have a mortgage, I don't drink or smoke, I live a very basic life. I did hear somewhere that if you pay more than half of the charge, they can't take you to court, which would be a weight off my mind, but other than that, I don't see how I can get them to understand that I have to live. Any suggestions as to a way forward?
I started my own business back in July and consequently received no help from the government when the lockdown began. I am now on UC but as everyone knows, it's not enough to live on. My service charge was due end of March, but the money I had set aside for it I used to live on for five weeks until my UC started. I am due an HMRC refund very shortly, and I have offered to pay half of the bill as soon as I receive my refund, paying the remainder after that in stages. I am only able to offer that if the lockdown is sufficiently lifted to enable me to start back to work as a home help, and obviously money and business will be slow to start. The management company are insisting that I settle it all by the end of June, but I am likely to only be earning about an extra £100 a week and my other payment holidays are ending in July. I was earning £1500 a month before all this and was making big inroads into repaying all the money I borrowed whilst my business was growing, but this lockdown, although completely necessary and I not against it at all, has been disastrous for me. I'm aiming to pay the charge asap, but there's only so far that the money will go. I don't pay rent or have a mortgage, I don't drink or smoke, I live a very basic life. I did hear somewhere that if you pay more than half of the charge, they can't take you to court, which would be a weight off my mind, but other than that, I don't see how I can get them to understand that I have to live. Any suggestions as to a way forward?
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Comments
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There are some small interest free overdraft facilities. You could check with your council whether you could get a reduction. If you currently have business outgoings, you could see if you could get a bounce back loan to help you with them, which might free up cash for the service charge.
I am not sure where the 50% rule on part payments comes from. It can have relevance to HP agreements with balloon payments. You might like to read this comprehensive guide, which includes dealing with amounts outstanding:
https://www.lease-advice.org/advice-guide/service-charges-other-issues/
At present there is a three month moratorium on most eviction proceedings.1 -
How much is the service charge? There is usually some form of additional cost if you don't pay the SC on time but taking you to court for not paying SC tends only to be used where a number of years have been missed and the debt is significant.
There is no eviction for nonpayment of SC.- All land is owned. If you are not on yours, you are on someone else's
- When on someone else's be it a road, a pavement, a right of way or a property there are rules. Don't assume there are none.
- "Free parking" doesn't mean free of rules. Check the rules and if you don't like them, go elsewhere
- All land is owned. If you are not on yours, you are on someone else's and their rules apply.
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Technically it seems that there can be under section 146 Law of Property Act 1925, but it would be a long way down the road.Galloglass said:How much is the service charge? There is usually some form of additional cost if you don't pay the SC on time but taking you to court for not paying SC tends only to be used where a number of years have been missed and the debt is significant.
There is no eviction for nonpayment of SC.0 -
Galloglass said:How much is the service charge? There is usually some form of additional cost if you don't pay the SC on time but taking you to court for not paying SC tends only to be used where a number of years have been missed and the debt is significant.
There is no eviction for nonpayment of SC.Galloglass said:How much is the service charge? There is usually some form of additional cost if you don't pay the SC on time but taking you to court for not paying SC tends only to be used where a number of years have been missed and the debt is significant.
There is no eviction for nonpayment of SC.
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Thanks everyone, I am worried sick tbh. It's £657 for six months, next payment is due at the end of September.
Are you absolutely positive about no eviction, only I was told differently by a CIB advisor, not recently tho.0 -
Thanks Jeremy, section 12.1 is the one I was looking for that the arrears must be over £350, so if I pay £350 of the service charge arrears as soon as the refund arrives, then they can't pursue it under section 146 and I can pay the remainder each month until I am up to date by the end of September. I am so grateful to all of you. You've made a middle aged woman very happy.0
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Now I understand the reference to 50%. It was your specific circumstances. Glad to be of help.0
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