Leasehold property

[DumDom 19]

Our house is a leasehold property, however this year we have not been sent a payment request.

 

ShouldI contact them, or leave it?

 

We are thinking that we may like to buy the lease ( or whatever it’s called) and wondered if it may go against us at a future date if we missed a payment.

 

Any help/suggestions appreciated.

 

Edited December 4, 2018 by DumDom

[Top Cats Hat 10]

1 hour ago, DumDom said:

We are thinking that we may like to buy the lease ( or whatever it’s called) and wondered if it may go against us at a future date if we missed a payment.

 

Any help/suggestions appreciated.

 

Do you mean buy the freehold or extend the lease?

 

Whichever, I doubt it would make much difference if they haven't actually billed you. It is their responsibility to do that, not yours to remind them.

[natjack 10]

 Make sure you pay even if they don't send you a demand,  its your responsibility to pay when it's due.  

 

They can charge interest and even foreclose on you.  Don't ignore it. 

[ttparsons 10]

Contact the freeholder and ask why you have not had a bill.  If they posted it but you did not receive it it is still due.  If it is overdue you could find yourself with interest and a hefty “admin fee” to pay.  Not sure if it could also go against your credit rating.

[geared 302]

11 hours ago, natjack said:

 Make sure you pay even if they don't send you a demand,  its your responsibility to pay when it's due.  

 

They can charge interest and even foreclose on you.  Don't ignore it. 

Absolute rubbish, there are strict guidelines on when a freeholder may apply for forfeiture and failing to send the request for ground rent payment is not one of them.

 

10 hours ago, ttparsons said:

If it is overdue you could find yourself with interest and a hefty “admin fee” to pay.  Not sure if it could also go against your credit rating.

No.

Edited December 5, 2018 by geared

[DumDom 19]

15 hours ago, Top Cats Hat said:

Do you mean buy the freehold or extend the lease?

 

Whichever, I doubt it would make much difference if they haven't actually billed you. It is their responsibility to do that, not yours to remind them.

Sorry, yes the freehold.

 

we pay a fee ( small amount) ground rent each year.

[geared 302]

They can ask for it backdated next year, which if it's just a small fee isn't usually an issue.

If they continually forget to ask for payment they're limited to being able to ask for 6 years backdated, but again it's their job to ask and not yours to offer the money.

 

Obviously when you've been there a few years you have the right to purchase the freehold, not too costly if you get a decent solicitor to sort it for you.

Don't get tricked into asking to buy it and then agreeing to whatever number they come up with, get your own professional advice on the matter.

Edited December 5, 2018 by geared

[Cyclone 10]

13 hours ago, natjack said:

 Make sure you pay even if they don't send you a demand,  its your responsibility to pay when it's due.  

 

They can charge interest and even foreclose on you.  Don't ignore it. 

I don't think that this is correct at all.  Do you have anything official to back it up?

1 hour ago, geared said:

They can ask for it backdated next year, which if it's just a small fee isn't usually an issue.

If they continually forget to ask for payment they're limited to being able to ask for 6 years backdated, but again it's their job to ask and not yours to offer the money.

 

Obviously when you've been there a few years you have the right to purchase the freehold, not too costly if you get a decent solicitor to sort it for you.

Don't get tricked into asking to buy it and then agreeing to whatever number they come up with, get your own professional advice on the matter.

This matched what I remember, if they don't remember to invoice you, all they can do is backdate it up to 6 years when they do remember.

 

Paying it without an invoice would be foolish, you have no information about whether it has changed hands or if the payment details have changed.  You could easily be paying the wrong account or organisation.

[Top Cats Hat 10]

13 minutes ago, Cyclone said:

if they don't remember to invoice you, all they can do is backdate it up to 6 years when they do remember.

And not even that in some cases.

 

There is a an obligation in law to prevent causing anyone who has a debt to you  to suffer a financial disadvantage.

 

If a person is not invoiced for six years but is only employed for the first four of them, they may be able to pay the annual debt during the period of unemployment but not the outstanding debt that has accrued in the four years while they were working. In that case a court would probably write the four years backlog off as the opportunity to recover that money while the debtor was in a position to pay was not taken.

[geared 302]

Quick copy and paste from the .Gov website

 

Quote

You don’t have to pay ground rent unless your landlord has sent you a formal, written demand for it. They can take legal action if you don’t pay after you’ve received the demand.

 

Your landlord can recover unpaid ground rent going back 6 years - they can ask you for the full amount in one go.

Your landlord can only increase the ground rent if you agree to the increase or the lease says this can happen.

Also before they are allowed to take legal action certain criteria need to be met

 

Quote

The freeholder can only start taking court action if:

• You’re three or more years in arrears with your ground rent
• You owe £350 or more worth of ground rent

You’re normally given four weeks to repay the arrears. If you’re able to pay what you owe, any legal action stops and your lease will continue as normal.

 

Edited December 5, 2018 by geared

[DumDom 19]

Thanks for all the replies.  I’ll see if they get in touch.

[Jeffrey Shaw 89]

On 12/5/2018 at 3:40 PM, geared said:

Quick copy and paste from the .Gov website

You don’t have to pay ground rent unless your landlord has sent you a formal, written demand for it. They can take legal action if you don’t pay after you’ve received the demand.

 

Yes. The reason is s.166 of the Commonhold and Leasehold Reform Act 2002, as below (with my added underlining):

 

166.  Requirement to notify long leaseholders that rent is due

 

(1) A tenant under a long lease of a dwelling is not liable to make a payment of rent under the lease unless the landlord has given him a notice relating to the payment; and the date on which he is liable to make the payment is that specified in the notice.

 

(2) The notice must specify—

(a) the amount of the payment,

(b) the date on which the tenant is liable to make it, and

(c) if different from that date, the date on which he would have been liable to make it in accordance with the lease,

and shall contain any such further information as may be prescribed.

 

(3) The date on which the tenant is liable to make the payment must not be—

(a) either less than 30 days or more than 60 days after the day on which the notice is given, or

(b) before that on which he would have been liable to make it in accordance with the lease.

 

(4) If the date on which the tenant is liable to make the payment is after that on which he would have been liable to make it in accordance with the lease, any provisions of the lease relating to non-payment or late payment of rent have effect accordingly.

 

(5) The notice—

(a) must be in the prescribed form, and

(b) may be sent by post.

 

(6) If the notice is sent by post, it must be addressed to a tenant at the dwelling unless he has notified the landlord in writing of a different address in England and Wales at which he wishes to be given notices under this section (in which case it must be addressed to him there).

 

(7) In this section “rent” does not include—

(a) a service charge (within the meaning of section 18(1) of the 1985 Act), or

(b) an administration charge (within the meaning of Part 1 of Schedule 11 to this Act)...

 

 

 

 

Edited December 11, 2018 by Jeffrey Shaw