Back dating Ground rent increase from 9 years ago!

Wow Mark this sounds Harsh!

I don’t know the answer, but have you checked with the Leasehold Advisory service yet.

Please see >> http://www.lease-advice.org/

Reply to the comment left by “Neil Patterson” at “17/08/2015 – 11:08“:

very harsh…. i called them but they werent interested…

thanks for that link Neil i’ll have a look at that late 🙂

You need to check your legal documents from the purchase of the property. I only have one leasehold property, managed by the seller’s company Vale Management. They set the management fees, but the groundrent rises should be stated on your deeds. If they do state a rise from 2006, then their only incompetence is not alerting you or collecting it. I would check the deeds and perhaps your solicitor, too. Not paying it would put you in breach of contract (as leaseholders are one up from renting – little fish) and they could add interest. Perhaps you could negotiate a direct debit repayment rather than one hit. Hope this helps.

thanks Connie… i suspect its in the lease, which i dont have a problem with, although i do have a problem with them backdating it due to their incompetence.
Also, would it have been the same increase back in 206, i suspect not…. i really do hate owning leasehold properties… or should i say ones owned by certain management companies…
so from what you’re saying and from what someone else has told me today they’re quite withing their rights to do this….. pretty outrageous.

If I remember correctly, even if the outcome is in the freeholder’s favour, they cannot go back more than 6 years. So the ground rent from 2006 – 2009 is effectively dead and buried…….Good luck!

Reply to the comment left by “Mark Lynham” at “17/08/2015 – 14:52“:

Yes – I’m selling my only leasehold property. All my others are share of freehold.

Remember that with a declining lease, they can also charge you to extend, and your property is worth less with a declined lease. Plus the maintenance costs can change.

Someone’s definitely laughing all the way to the bank, and it’s not you.

I would negotiate a repayment amount and make it seem like you’re more than willing to pay. And yes, it was incompetence on their part, but they’re holding the better hand – as long as it was in the increases are in the deeds.

But check what the chap above me, Graeme, said! Ask your conveyancing solicitor.

Best of luck.

many thanks for your help.. and i’ll check re the going back 6 years as anything will help!

Hi Mark,
I am assuming that ground rent has been collected and the only issue is the increase. In any case only 6 years arrears can be demanded.
Make sure that the property valuation being used to calculate the increase is applicable for 2006 and not as of today.
Cheers Mike

Another thought, Mark.
Has the existing freeholder owned the freehold since 2006 or before.?
If not, clarify what year they acquired/purchased it. They can only claim increases/arrears for the years that they have actually owned it. They cannot claim arrears/increases for earlier years preceding their ownership….

ah, excellent, thank you, i’ll look into this… its Proxima GR Properties Ltd that are the landlord and not sure they are the original company… also E&M took over management in 2009 which is why the guy said it had ‘slipped through the net’
I think i need to compose a letter to them.