Advice needed re: arrears of service charges on leasehold flat

UKroseblue

Hi

Don't know if this is the right place so apologies if not.

Stupidly i have got into arrears with my service charges on my flat. It was just one of those things that was easy not to pay. Crazy to think that, i know but i kept up with the mortgage and what with everything, something had to give, unfortunately over the past three years they have said the arrears have now risen to about £1000. The service charge was £35 per month when i first moved in five years ago and it has stayed at this until last november when they put it up to £75 a month as they said they needed to do work (which hadn't been done since i moved in) and they didn't have the funds to cover it all so we needed to pay extra. I couldn't afford the extra each month but paid what i could - sometimes this was as little as £5 but mostly between £30 and £60 pm. The leasehold was sold to the company that has it now about 2 years ago and I did try to contact them a few times but they were terrible to get hold of and they never replied to any emails (which i haven't kept) i haven't tried to contact them for about a year.

Anyway,the upshot is i have now received a letter from them saying if i don't pay the arrears in full within 7 days, they will instruct a solicitor. They don't say what they can do but obvioulsy i am worried i'm going to lose the flat.

I emailed them right away and will follow up with a letter explaining my circumstances and making them an offer of repayment of £10 pm above the monthly charge so £85 but i guess they might be sceptical about my ability to repay as i haven't been paying my full monthly payment.

I am on a dmp with payplan but i don't know if i can add the debt to that or if they are entitled to reposses the flat - which i don't want them to do.

Does anyone have any advice - apart from the 'you have been very stupid and should have contacted them earlier if you were having difficulty'

can they reposses the flat?

Captain_Mainwaring_2

Normally they inform your building society, and in the event of default they will add the service charge to your mortgage account - otherwise the security they have in the lease could be lost .

I'd try and send them something - all the guys do is keep adding interest and charges "in acordance with the terms of your lease" .

Golden rule - never delete an email, always request a "read" receipt.

The only way that you can shut these guys up is if you have a share of the freehold. Count yourself luck that the agents aren't CPM.

silvercar

If the worst should happen the mortgage company will pay the arrears and add the amount to your mortgage. Ironic in that if you phoned the mortgage company and asked for an increased loan in order to pay these charges they would probably say no. You are technically in breach of your mortgage conditions by not keeping up with the service charge, so I expect that the lender will remind you of this in a letter when they write to inform you they have had no option but to pay the charge on your behalf.

Whether the mortgage lender will readjust your payments to allow for the increased mortgage size or ask you to arrange to pay off the service charge amount to them as soon as possible, I don't know. It could well depend on the attitude of the lender.