Service charges

Unionjack

Morning all ..ok I know it's my fault and I am.beside myself with worry am not passing blame but live with partner who keeps quitting jobs so we get on top to fall back again I.am.behind with service charges I.have paid some but kept thinking we would have money to continue paying ..I was wrong..it's been sent to a soliciter who says if I don't pay I will be taken to court ..I am going to ring them to ask if they will.give me 2 more weeks ..it's due by 27th Nov..by giving me 2 more weeks I know I will have the money to pay all.advice greatly appreciated 

Soundgirlrocks

Hey, didn't want to read and run, I'm assuming you are talking about property service charges? First off don't panic, whilst yes they can go to court to recover the debt its not a quick process. It sounds like the management company is at the first official step to recover the money.

Others can offer more advice for overall budgeting going forward and doing a SOA but I would encourage you if you haven't already to set up a monthly payment for the service charge so you don't get landed with a big bill once a year. 

sourcrates

Don`t be afraid of court action, if anything it would be in your best interest.

Courts make judgements based on your budget, so if all you can afford is say £5.00 per month (just as an example) the court would make an order to that effect.

Companies make these legal threats all the time, they do not always understand how the legal system works themselves, so as long as a CCJ is not going to be a problem for you, don`t be bullied by the threat of legal action, as the courts are there to not only protect the claimant's rights, but yours as well.

Sncjw

Why does he keep quitting jobs. Have you sta down and talked to him how it's impacting you both financially 

Unionjack

Thanks for yr advice my big concern is that I will loose the flat 

fatbelly

That's unlikely. On what basis are you living there? Leaseholder? Private tenant?

peb

Ok. Contact them. Negotiate. But. This IS a priority debt.   

Seek advice re any other debts, the guys here will help, but not paying service charge can lead eventually to the lease being rescinded.   It won't happen overnight but again treat like you would the mortgage payments.

eddddy

sourcrates said:

Don`t be afraid of court action, if anything it would be in your best interest.

Courts make judgements based on your budget, so if all you can afford is say £5.00 per month (just as an example) the court would make an order to that effect.

Companies make these legal threats all the time, they do not always understand how the legal system works themselves, so as long as a CCJ is not going to be a problem for you, don`t be bullied by the threat of legal action, as the courts are there to not only protect the claimant's rights, but yours as well.

If the OP is talking about leasehold service charges, that's very bad advice. Leasehold Service Charge debts are different from other debts. 

The OP should try contacting the freeholder (landlord) to see if they can negotiate an agreement.

The lease and the law will almost always allow the freeholder (landlord) to do the following:

• Add admin charges to the OP's bill - for sending reminder letters, etc

• Instruct solicitors - and add the solicitor's fee to the OP's bill

• Instruct debt collectors - and add the debt collector's fee to the OP's bill

• Ask the OP's mortgage lender to pay the total debt - and they usually will pay, to protect their security, and it will be added to the OP's mortgage 

• If the OP ends up owing over £350 - apply for a court order allowing the freeholder (landlord) to terminate the lease and take back possession of the property

LEASE is a government funded advice service for leaseholders - here's what they say: https://www.lease-advice.org/advice-guide/service-charges-other-issues/#s-12
(See section 12)

sourcrates

eddddy said:

sourcrates said:

Don`t be afraid of court action, if anything it would be in your best interest.

Courts make judgements based on your budget, so if all you can afford is say £5.00 per month (just as an example) the court would make an order to that effect.

Companies make these legal threats all the time, they do not always understand how the legal system works themselves, so as long as a CCJ is not going to be a problem for you, don`t be bullied by the threat of legal action, as the courts are there to not only protect the claimant's rights, but yours as well.

If the OP is talking about leasehold service charges, that's very bad advice. Leasehold Service Charge debts are different from other debts. 

The OP should try contacting the freeholder (landlord) to see if they can negotiate an agreement.

The lease and the law will almost always allow the freeholder (landlord) to do the following:

• Add admin charges to the OP's bill - for sending reminder letters, etc

• Instruct solicitors - and add the solicitor's fee to the OP's bill

• Instruct debt collectors - and add the debt collector's fee to the OP's bill

• Ask the OP's mortgage lender to pay the total debt - and they usually will pay, to protect their security, and it will be added to the OP's mortgage 

• If the OP ends up owing over £350 - apply for a court order allowing the freeholder (landlord) to terminate the lease and take back possession of the property

LEASE is a government funded advice service for leaseholders - here's what they say: https://www.lease-advice.org/advice-guide/service-charges-other-issues/#s-12
(See section 12)

Thank you for that, I have learnt something today, property law is not my area of expertise.

Interesting what powers these companies can muster.

peb

Plus, a breach of the lease terms will be a breach of the mortgage conditions and also a lot of leases class service charges as additional rent, so yes, it is a priority debt

fatbelly

OP. Please confirm on what basis do you live in the flat?