Rentcharge scam or genuine?

Cheadle8

In 2024, I bought a semi detached property in Greater Manchester which has a rentcharge. The rentcharge was created in 1976 when the house was built and was in favour of the house builder. The house is on a small estate of similar houses, and the neighbours have a similar rentcharge. The building company named in the title document does not appear to exist at Companies House, and no results come up from a Google search. I can only assume that the building company ceased to exist many years ago. Out of the blue I received an invoice from a company claiming the current rentcharge. I contacted the Land Registry to ask if they had any record of this apparent charge over my property. They could not help and suggested I contact a solicitor. As the rentcharge is £20 per year, I am not going to waste any money on a solicitor at up to £200 per hour.

I emailed the company claiming the rentcharge, and asked for proof that they actually owned the right to apply the rentcharge. Apart from an acknowledgement of my email, I have heard nothing from them. I have recently received another invoice. However, I am beginning to suspect that the people who run this company wait for a house sale, and then send a speculative invoice, hoping the new house buyer will pay, and carry on paying as some of my neighbours have done.

Does anyone know if there is a way of finding out who currently owns the rentcharge? I have read in a solicitor's posting that any charge against a property should be registered in the name of the current (and not just the original) beneficiary at the Land Registry.

The draconian sanctions previously available to rentcharge holders has been changed by the Leasehold and Freehold Reform Act 2024, so I am at no risk of having a lease granted on my property to essentially blackmail me into paying. I have read an extensive posting on this forum where a number of the posters seemed unaware of this.

poseidon1

I would expect genuine 'scammers' to be far more ambitious than to go to time trouble and expense to scam you for a mere £20.

Keep_pedalling

What is the name of the company?

Cheadle8

The new company claiming ownership of the rentcharge is Borsdane Properties Ltd. I think householders are more likely just to pay up on low amounts, and then they keep paying year after year. The only thing any scammer needs would be a computer plus a spreadsheet/database and a printer. I could do this in my sleep. The original question still stands. Should the new rentcharge owner have registered their interest at the Land Registry?

RelievedSheff

A quick glance on Companies House seems to suggest that the company was incorporated in 1963.

I would contact them using the registered details on Companies House to confirm if the invoice is legitimate.

Cheadle8

Of course they are going to say that their invoice is valid. I have already contacted them by email and asked for proof that they actually own the rentcharge. Apart from an automated email acknowledgement of my request, I have heard nothing. As I said in my previous reply, I could set one of these operations up quite easily and it would basically run on autopilot. Small and regular contributions could be quite a nice earner.

poseidon1

Probably won't reassure the OP this is unlikely to be a scam, but one of the lead directors of the company is a solicitor regulated by the Law Society.

Whether that solicitor would risk prosecution and being struck off the Roll for a £20 fraud, I will let others judge.

Herzlos

Have you spoken to the neighbours about who owns their rentcharges? Did any of them get similar invoices? Is the charge in line with what you'd be expecting to pay?

bobster2

@Cheadle8 the laws around rentcharges are complex - and the 2024 changes don't necessarily apply to every type of rentcharge. So some legal advice could be worthwhile.

Yorkie1

Do you have legal expenses cover with your house insurance? If so, might be worth seeing if it would cover a query about this