absent freeholder

[Guest trebor69trebor]

The freeholder of one of my rented flats has changed and now the new guy thinks he can add £200 to yearly bill. Has not done any maintenace to communal areas and front and rear gardens are in a right mess.I pay £250 service charge and £50 ground rent Also buildings insurance has to be pay''d by all 5 flats but this is never been broken down and does not show on any of the letters received.also the water rates are payed by the freeholder and then recovered from all flats at end of year but again nothing set up for this as yet. He has said that the extra £200 is split £100 for fund? and £100 admin? contacted this guy and in broken english was told that if i want the place clean then do it your self this from a guy who want extra money. Any advice would be great many thanks.

[Preston]

Hi,

I have this sort of problem with freeholders all the time unfortunately!

Just a few thoughts:

• Under section 21 of the Landlord and Tenant Act 1985 you are entitled to a written summary of costs incurred by the landlord within 1 month of asking for it or within six months after the end of the relevant accounting period, whichever is the later. The accounting period (usually a financial year) should be made clear in the lease
  
• Under section 152 of the Commonhold and Leasehold Reform Act 2002, a leaseholder is entitled to withhold payment of the service charges if the landlord has not supplied accounting statements in accordance with section 21 of the Landlord and Tenant Act 1985.
  
• Insurance is almost certainly a service charge and so should be included in the above accounting statement. Again, your lease should make it clear whether or not is is a service charge
  
• With regard to water rates, again the lease should make clear whether they are a service charge. They probably are.
  
• Ground rent is not a service charge, but is covered by very strict rules too. You are not obliged to pay the ground rent unless it has been demanded properly. This means it must comply with the terms of your lease, it must contain the information prescribed by Section 166 of the Commonhold and Leasehold Reform Act 2002 and it must give you at least 30 days to pay
  
• He can only claim money for a fund - I assume you mean a sinking fund for future expenditure? - if the lease explicitly allows it. I always also ask for proof that any such money is being paid into a client account, which should now be the case by law. The best proof is for your cheque or payment to be made direct into a client account.
  
• He will usually be allowed to claim for reasonable admin costs, but again only if the lease allows it.
  

How far you go with these rights - particularly item 2 above - obviously depends on how firm you want to be. As with most other things, negotiating first is the best way, however, one word of caution with regard to service charges is that once you have paid them it is then very difficult for you to argue that you disagree with them - payment can be taken as acceptance.

I have one problem which has been going on for 5 years and we only got things moving when we - the leaseholders collectively - threatened to apply to a Leasehold Valuation Tribunal to have the management taken away from the freeholder. Its worth keeping copies of all corrrespondence etc in case you need to go down this route in the future.

As I have said elsewhere on this forum, my personal view is that leasehold management in this country is in a complete mess and needs a radical overhaul.

Preston

[Guest trebor69trebor]

Hi,

I have this sort of problem with freeholders all the time unfortunately!

Just a few thoughts:

• Under section 21 of the Landlord and Tenant Act 1985 you are entitled to a written summary of costs incurred by the landlord within 1 month of asking for it or within six months after the end of the relevant accounting period, whichever is the later. The accounting period (usually a financial year) should be made clear in the lease
  
• Under section 152 of the Commonhold and Leasehold Reform Act 2002, a leaseholder is entitled to withhold payment of the service charges if the landlord has not supplied accounting statements in accordance with section 21 of the Landlord and Tenant Act 1985.
  
• Insurance is almost certainly a service charge and so should be included in the above accounting statement. Again, your lease should make it clear whether or not is is a service charge
  
• With regard to water rates, again the lease should make clear whether they are a service charge. They probably are.
  
• Ground rent is not a service charge, but is covered by very strict rules too. You are not obliged to pay the ground rent unless it has been demanded properly. This means it must comply with the terms of your lease, it must contain the information prescribed by Section 166 of the Commonhold and Leasehold Reform Act 2002 and it must give you at least 30 days to pay
  
• He can only claim money for a fund - I assume you mean a sinking fund for future expenditure? - if the lease explicitly allows it. I always also ask for proof that any such money is being paid into a client account, which should now be the case by law. The best proof is for your cheque or payment to be made direct into a client account.
  
• He will usually be allowed to claim for reasonable admin costs, but again only if the lease allows it.
  

How far you go with these rights - particularly item 2 above - obviously depends on how firm you want to be. As with most other things, negotiating first is the best way, however, one word of caution with regard to service charges is that once you have paid them it is then very difficult for you to argue that you disagree with them - payment can be taken as acceptance.

I have one problem which has been going on for 5 years and we only got things moving when we - the leaseholders collectively - threatened to apply to a Leasehold Valuation Tribunal to have the management taken away from the freeholder. Its worth keeping copies of all corrrespondence etc in case you need to go down this route in the future.

As I have said elsewhere on this forum, my personal view is that leasehold management in this country is in a complete mess and needs a radical overhaul.

Preston

thanks preston very helpfull luckly I have payment on hold until this is sorted but thanks again Rob.