3 years ago | 27 comments
Hello, we have roof repairs to undertake and have notified leaseholders through the Section 20 process this process is completed. There were no responses during the consultation process. After this, we have received payment from the leaseholders except one, who subsequently on the request for payment has then listed objections and is refusing to pay. What are our options?
In days gone by it was possible to ask the mortgage lender to add this to the leaseholders’ loan. Is that still an option?
Thanks,
Robert
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Member Since October 2022 - Comments: 413
2:30 PM, 24th June 2023, About 3 years ago
Reply to the comment left by Clint at 24/06/2023 – 13:24
Pursuit of service charge contributions arrears by the landlord under the provisions of the lease must be within 18 months of costs incurred. The amounts claimed must be reasonable.
If leaseholder disputes then LH has legal rights under CLRA 2002 to transfer from civil court to FTT for a determination on any breach of the lease relating to service charge. It also requires that the LL has issued demands correctly ie in compliance with what it says in lease.
Ground rent must be dealt with separately. It is not service charge within meaning of ss 18-30 landlord & tenant acts. Download RICS guide to service charge
Member Since April 2015 - Comments: 468
7:12 PM, 24th June 2023, About 3 years ago
Reply to the comment left by Kizzie at 24/06/2023 – 14:30
I do know the laws that you have stated and am well aware of the 18 month rule. However, as long as the service charges are demanded within the 18 month period from the time they are due with all the appropriate notices, the 3 year forfeiture rule does apply.
I am also aware that the leaseholder has the right to challenge the leasehold charges however, in response to the question asked by Robert, one assumes that the service charges are reasonable and legally due and all appropriate notices were served.
I am also well aware, that the claim can be transferred to the FTT. If I went through all what you have written, Robert would have to probably have to engage a solicitor to represent him and this may still be the case.
The question Robert asked was, In days gone by it was possible to ask the mortgage lender to add this to the leaseholders’ loan. Is that still an option?
I am no solicitor & have given my advice which I believe is right and has worked for me & will be following this process in the future if necessary.
Please note, that as stated above I am not a solicitor and any advice given should not be treated as solid legal advice but that of one with experience.
Member Since April 2015 - Comments: 468
7:21 PM, 24th June 2023, About 3 years ago
Reply to the comment left by Dylan Morris at 21/06/2023 – 10:59
I do threaten forfeiture of the lease after I get a judgment against the leaseholder.
Member Since April 2015 - Comments: 468
7:25 PM, 24th June 2023, About 3 years ago
Reply to the comment left by Kizzie at 21/06/2023 – 14:20
Could you please reply to Puzzler as I agree with him and was interested in what explanation you had.
Member Since October 2022 - Comments: 413
8:59 AM, 25th June 2023, About 3 years ago
RICS service charge residential management code
Member Since July 2013 - Comments: 1266 - Articles: 1
8:14 AM, 26th June 2023, About 3 years ago
My questions were how there is a tax liability and why you think it is breach of lease to go to court? There is a tax liability on admin charges but can easily be dealt with. The courts hear cases regularly so it cannot be a breach of lease provided proper procedure is followed