Leasehold ownership payment dispute

Alexis31

Hello.

I have recently purchased a leasehold flat and I'm in a stressful dispute with my Freeholder.

I have received a complaint letter from Freeholder (it was addressed to my purchase solicitor as well) that charge fee for the change of ownership of the flat was not paid and that I'm currently in breach of the lease (Notice of Assignment/Charge). I was given 10 days to pay or they will instruct their solicitors to take legal action against me and ultimately terminate the lease (eviction?)

I contacted my solicitor immediately and demanded an explanation. He stated he will send the payment immediately (thus admitting he didn't do it by the completion date)

However, Freeholder on the phone talk (they don't have email) still claims they didn't receive anything. The solicitor sent them confirmation via Fax but they once again stated they didn't get anything. Then I sent them receipt on post with tracking and signature required. The tracking shows the package was taken and signed (the address is on PO Box though) but then after another phone talk they once again claimed there was no payment, no fax or any sort of package from me. My Solicitor contacted them and told me that they didn't update their accounts yet and once they will contact him and he will contact me.

Another few days passed and I wasn't contacted by either my solicitor or the freeholder.

And this struggle went for over a week and 2 weeks since letter passed. So far I didn't receive another letter.

My concerns:
- Freeholder doesn't have email and they use PO Box address where they claim the letter didn't reach them. Any discussions regarding the issue were discussed over the phone. They could claim I never contacted them in the first place and ignored the problem?
- If it comes to legal action will I have to accuse my solicitor for not fulfilling financial obligations by the completion date? Freeholder aside, my solicitor admitted that payment was not sent before the complaint letter which was sent week after completion.

In the end I wish to avoid legal dispute. The purchase of the flat bleed my finances dry. But it looks like this issue is stuck in place. The solicitor claims they sent the payment, Freeholder claims they didn't receive anything.

Thanks

eddddy

This sounds very annoying, but it is not as serious as you seem to think.

Don't worry about your lease being terminated. Even if the freeholder decided to start that process, it would require a court order - that would take months, maybe over a year

I'm sure this issue would be resolved long before that.

In your position, I would calmly phone the freeholder - perhaps once a week - to remind them that your solicitor has sent payment and the notice, and ask if they have received it.

If they say "no" - follow up with an email to your solicitor to say that the freeholder says they still haven't received  the payment and the notice.


I'm sure that whoever is at fault will eventually sort this out.

But I guess there may be a further dispute, if the freeholder charges a 'late fee' because they say the notice was sent late. 

propertyrental

In your position I'd want something in writing from them. Be that a demand for payment, denial of payment received, and/or confirmation that payment has been received.

Is the freeholder a private individual? A company? If company, are they registered with Companies House? 

Is the PO box really the only address you have? Does Companies House have another address? Have you tried duckducking them? (OK, googling if you must!)

Alexis31

eddddy said:

This sounds very annoying, but it is not as serious as you seem to think.

Don't worry about your lease being terminated. Even if the freeholder decided to start that process, it would require a court order - that would take months, maybe over a year

I'm sure this issue would be resolved long before that.

In your position, I would calmly phone the freeholder - perhaps once a week - to remind them that your solicitor has sent payment and the notice, and ask if they have received it.

If they say "no" - follow up with an email to your solicitor to say that the freeholder says they still haven't received  the payment and the notice.


I'm sure that whoever is at fault will eventually sort this out.

But I guess there may be a further dispute, if the freeholder charges a 'late fee' because they say the notice was sent late. 

Thanks for reply.

I was calling both my solicitor and freeholder several days a week. However, I was eventually "downplayed" by both of them that they will contact me instead when they get any updates.

As for the further dispute. I have receipt of the payment from the solicitor that is within the time I was given by the freeholder. 

propertyrental said:

In your position I'd want something in writing from them. Be that a demand for payment, denial of payment received, and/or confirmation that payment has been received.

Is the freeholder a private individual? A company? If company, are they registered with Companies House? 

Is the PO box really the only address you have? Does Companies House have another address? Have you tried duckducking them? (OK, googling if you must!)

Thanks for reply.

From Freeholder I have only letter demanding a payment. And from solicitor I have emails confirming to me that they send the payment (after the complaint letter from Freeholder) and their receipt (although it looks like something from their internal systems rather than a bank receipt)

The Freeholder seems to be a very small company. It was difficult to find anything about them in the internet. They are registered in Companies House although on different (No PO Box) address. 

I suppose I will call both solicitor and freeholder again on tomorrow and this time send the receipt on the address registered in Companies House instead of the PO Box that they asked.

propertyrental

Alexis31 said:

eddddy said:

This sounds very annoying, but it is not as serious as you seem to think.

Don't worry about your lease being terminated. Even if the freeholder decided to start that process, it would require a court order - that would take months, maybe over a year

I'm sure this issue would be resolved long before that.

In your position, I would calmly phone the freeholder - perhaps once a week - to remind them that your solicitor has sent payment and the notice, and ask if they have received it.

If they say "no" - follow up with an email to your solicitor to say that the freeholder says they still haven't received  the payment and the notice.


I'm sure that whoever is at fault will eventually sort this out.

But I guess there may be a further dispute, if the freeholder charges a 'late fee' because they say the notice was sent late. 

propertyrental said:

In your position I'd want something in writing from them. Be that a demand for payment, denial of payment received, and/or confirmation that payment has been received.

Is the freeholder a private individual? A company? If company, are they registered with Companies House? 

Is the PO box really the only address you have? Does Companies House have another address? Have you tried duckducking them? (OK, googling if you must!)

Thanks for reply.

From Freeholder I have only letter demanding a payment.
Is there no address on the letter?
.......

The Freeholder seems to be a very small company. It was difficult to find anything about them in the internet.
'Difficult' but with some success or no success?
 They are registered in Companies House although on different (No PO Box) address. 

I suppose I will call both solicitor and freeholder again on tomorrow and this time send the receipt on the address registered in Companies House instead of the PO Box that they asked.

I would stop calling, and write. To the PO address and with copies to the Companies House address, plus whatever address(s) you managed to find with difficulty on the internet.

Have you spoken to the other leaseholders in the building? Do they have contact details? I assume you spoke to (some of) the other flat owners before the purchase - what did they say about the freeholder's efficiency?

During the conveyancing process I assume you received annual accounts from the freeholder and/or other documentation. Was it all from the PO address? Did that not concern you and/or your solicitor?

Alexis31

propertyrental said:

Alexis31 said:

eddddy said:

This sounds very annoying, but it is not as serious as you seem to think.

Don't worry about your lease being terminated. Even if the freeholder decided to start that process, it would require a court order - that would take months, maybe over a year

I'm sure this issue would be resolved long before that.

In your position, I would calmly phone the freeholder - perhaps once a week - to remind them that your solicitor has sent payment and the notice, and ask if they have received it.

If they say "no" - follow up with an email to your solicitor to say that the freeholder says they still haven't received  the payment and the notice.


I'm sure that whoever is at fault will eventually sort this out.

But I guess there may be a further dispute, if the freeholder charges a 'late fee' because they say the notice was sent late. 

propertyrental said:

In your position I'd want something in writing from them. Be that a demand for payment, denial of payment received, and/or confirmation that payment has been received.

Is the freeholder a private individual? A company? If company, are they registered with Companies House? 

Is the PO box really the only address you have? Does Companies House have another address? Have you tried duckducking them? (OK, googling if you must!)

Thanks for reply.

From Freeholder I have only letter demanding a payment.
Is there no address on the letter?
.......

The Freeholder seems to be a very small company. It was difficult to find anything about them in the internet.
'Difficult' but with some success or no success?
 They are registered in Companies House although on different (No PO Box) address. 

I suppose I will call both solicitor and freeholder again on tomorrow and this time send the receipt on the address registered in Companies House instead of the PO Box that they asked.

I would stop calling, and write. To the PO address and with copies to the Companies House address, plus whatever address(s) you managed to find with difficulty on the internet.

Have you spoken to the other leaseholders in the building? Do they have contact details? I assume you spoke to (some of) the other flat owners before the purchase - what did they say about the freeholder's efficiency?

During the conveyancing process I assume you received annual accounts from the freeholder and/or other documentation. Was it all from the PO address? Did that not concern you and/or your solicitor?

I have found a different/"proper" address on a government website in the Companies House register. The address from the payment letter was for PO Box address.

From what I understood there are two different companies. One is responsible for the building while the other one is governing the leases. Any documents that I was looking at are pointing towards the building-related company that so far was not sending any demands. 

I should have done much more research on that matter. 

I will send the letters on both PO Box and the address from Company Houses register. I will also contact the building company/neighbours about the leasehold company (I don't know why I didn't do it sooner) 

EssexHebridean

Just for clarity, the notice of transfer/charge cannot be done ahead of completion - because prior to that point the transfer has not been made. It’s usually done shortly afterwards though.  The documentation provided by the freeholder in the leasehold pack confirms the correct address for notices to be sent to. In your case it sounds as though there is a freeholder and separate management Co - sometimes both require the notices.