Ground rent problems

[gaz0609]

In July last year the company we pay our ground rent to changed. I had happily been paying it monthly to the original company with no problems. So as soon as i learnt a new company would be taking it on i emailed them straight away to explain that i can only afford to pay it via monthly payments.

I emailed them a few times with no response, and then at the beginning of Dec i received a pack detailing what i owed them for the remainder of last year and for this year. They said that i must pay them what i owe for 2012 by the 1st Jan 2013.

Not having the money to pay what i owed in one go i again emailed them and said i would pay what i owed them plus 2013 payment via 12 monthly payments. I received a letter this week stating that i must pay everything that i owe them within 7 working days or face late payment fees of £45.

So again i emailed them stressing i can only afford to pay via 12 monthly payments. I also payed this months payment as they had provided their bank details. So the next day i finally get the first email from them saying that this ground rent can only be payed off with one payment.

So i wondering where i stand with this now? The previous company had no problems taking monthly payments, and i carnt afford to pay in one go so this is the only way i can do it

All advice welcome???

[mariner51]

The annual ground rent and due payment dates should be specified in the Property Deeds (£4 Land Registry on line). Demand for Ground Rent should be in Stat format.

If GR is due annually or 6 monthly, in advance by post, I don't think you can require them to accept monthly payments by SO etc. Lot easier to set up SO or direct banking payments if you have their bank sort code, correct account number and unique customer ref of course.

How much is annual ground rent?

 

Once you have cleared the arrears due up to next payment date, save GR money in sep bank account, so you can pay when due. GR periods are normally payable in advance. Also, don't rely on email, put your position & offer in writing, and post, addressed to the top man.

Edited January 25, 2013 by mariner51

[andydd]

Hi there.

 

Who do you pay ground rent to, is it the Freeholder (Landlord) or a managment company ?

 

If the freehold is sold to another company then you should of been given first dibs to buy it, if not its a criminal offence, however it may be that the management company the freeholder chooses to use has changes, this is legal BUT under the provisions of S20 of lanldlord and tenant act 1985 (http://www.legislation.gov.uk/ukpga/1985/70) where a freeholder enters into a new contract that will last over 12 months and cost a leaseholder more than £100 per year he must follow the S20 consultation process.

 

So who send demands for ground to you ?, Freeholder or Management agent, who has changed ?

 

Are you charged a management fee of more than £100 ?

 

Do ground rent demands comply with lease (i.e sent at certain time) and do demands comply with s166 of commonhold and leasehold reform act 2002 ? (http://www.legislation.gov.uk/ukpga/2002/15/section/166) ?

 

Are you confusing ground rent with service charges ?. Generally ground rent is lowish (from £10 - £100) per year, if the above is complied with though it is payable and you SHOULD make every attempt to pay it in full otherwise it is possible to forfeit (i.e take !) your whole property in certain circumstances.

 

Try visiting lease advice site for help >http://www.lease-advice.org/

 

Andy

[gaz0609]

Hi andy

 

I think im right in saying the freeholder has changed. Last year i was paying ground rent to the building company that built the flats. I pay £250 a year for ground rent.

I pay both ground rent and service charges to two seperate companys.

It sounds like the original company were doing me a favour in letting me pay monthly then. Lets hope the new company can do the same else im stuffed!

[fletch70]

My landlord tells me that if the flats are above commercial property there is no right to buy the freehold. I rent a purpose built flat above some shops. My landlord owns 7 of the 8 but can not buy the freehold. £250 ground rent seems steep.

[andydd]

We need to work out who exactly is the freeholder and who is the management agent, it is norm for ground rent to be payable to fh but the ma will collect it on his behalf. What does the lease say about it ? It will normally be payable in full when demanded, normally at begining of year, you have no right to do monthly payments but it is something you could agree with fh/ma.

 

It is concern though if the fh has been sold without offering to you first and you can take action about this.

 

Can you scan docs and post them so we can understand situation better ?

 

Andy

[bellijayne]

Just a thought here. I know with myself I rang the Land Registry who in turn gave me the name of the Freeholder as listed with them. You may be able to argue a case here in that, you are not refusing to pay but so as to avoid financial hardship it's easier to pay via installments. This one is a long shot... Human Rights Act (Nov) 1998 - Article 8. You do have the right to a home and private life in that within the Lease there may be the term "to peaceably hold & enjoy". It's not like you've point blank refused to pay is it?