Why do domestic residents have to pay for a commercial risk by the Landlord?

Why do domestic residents have to pay for a commercial risk by the Landlord?

9:56 AM, 29th March 2017, About 5 years ago 3

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I have an apartment in Birmingham, The Masshouse Plaza, recently we received notification that the resident of a commercial block had not paid their service charges for 2 years, and as residents of one of the residential blocks, we are now responsible for nearly £200,000 of debt owed to the Landlord by the commercial interest.

I am shocked that this ‘commercial responsibility’ wasn’t pointed out to us when we purchased, and that as residents who had no say on the commercial block, could not profit from it etc are left footing the bills.

It seems that Heads the Landlord wins, tails we loose.

Can anyone advise and let us know if there is any hope of redress for what seems a rather unfair policy.



by Neil Patterson

9:58 AM, 29th March 2017, About 5 years ago

Hi Stuart,

How many residents is the £200,000 split between just out of interest?

I would get your solicitor to recheck your lease agreement and also contact the Leasehold Advisory Service >> http://www.lease-advice.org/

by Lucy Fryer

12:53 PM, 29th March 2017, About 5 years ago

Hi Stuart
I suggest that you get a copy of the Lease and read it through carefully. Also ask the freeholder/landlord to set out their rationale for saying that you are liable - get them to point to exact chapter & verse in the Lease - them just saying that it is so, is not good enough. Then send the Lease to a leasehold expert and get their opinion. Bernie Wales is one of the best in the business - http://www.berniewales.co.uk. Bernie can be quite difficult to get hold of, but you can book a 15 minute consultation with him online and then take it from there.
(PS. I'm not on any form of commission etc with Bernie!)

by John Pettman

17:32 PM, 30th March 2017, About 5 years ago

First question .Who is responsible for carrying out the insurance, repairs and maintenance etc Is it the freeholder or perhaps a management company whose shareholders/members are just the leaseholders Second question what EXACTLY does the lease say in respect of your share of the total costs . Does it provide for an exact percentage of the total costs. If it is the freeholder who is totally separate from the Leaseholders i.e the leaseholders do not own the freehold who is responsible for the maintenance and your lease is clear and provides for an exact percentage then the problem of non payment is with the freeholder not yours but we need more information to give any more information

John Pettman

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