11:19 AM, 25th September 2018, About 4 years ago 5
Hi – just wanted to check if there are any laws in this area. I am the leaseholder in a small group of flats (own share of freehold as well). It seems one or two flats have not been paying their share of freeholder fee e.g. ground rent, insurance, some monthly fee etc.
So it seems the company secretary and treasurer have come up with a few practices to encourage timely payment – they issue invoices e.g. for yearly building insurance with 6 days payment period now (in the past it used to be 30 days); For monthly payments (service charge), they request people to confirm they have set up standing order, and send out reminders for payment before their due date.
I am one of those people who always pay on time, so don’t tend to reply to any premature reminders for payments or set up standing orders. I believe as long as I pay on time so that the recipient gets the funds before the end of due date (I do allow adequate time for funds to be cleared etc.), I should be fine.
So this time, the freeholder came up with a different trick. They issued a letter saying my payment is overdue after the due date, even though I had paid on time. After several emails were exchanged, they did admit they had issued the letter based on a bank statement produced much before the due date had expired. When they actually produced a statement for close of business due date, my payment was there!
In the end, they had nothing against me, but the whole experience was quite time consuming and annoying. Seems they want to push me into paying much before due date by creating unnecessary confusion.
I wanted to understand if what they are doing is legal and if there is anything I can do to stop this unnecessary harassment. Are there any minimum payment period they must give? 6 days for annual building insurance seems too short!
I understand their goals are not necessarily bad, it’s just the approach seems like harassment.
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