Selkirk Posted November 16, 2008 Report Share Posted November 16, 2008 Hi I would appreciate any views on this one as it’s coming to the boil now. I bought a flat last year, as a BTL, and all changed over very smoothly. However, some months later my T passed me a letter from the company that collect the ground rent. They were asking for the occupier to contact them, I duly contacted them and said I was the owner and the place was tenanted. They said I hadn’t informed them of the change in ownership and they were writing to say the ground rent, paid in advance, for 2008 was over due, I said sorry about that and offered to pay and further explained what had happened but they said I couldn’t as I was not the registered owner. The problem was the conveyancer had not advised them of the change in ownership within the stipulated 30 days or something. The conveyancer reopened the file and tried to complete the process but the ground rent company came back with a list of things that now needed to be done. If done correctly in the first place it would have cost £85 (work quoted for originally so i've paid this) to have it all changed over but now they were asking for £400 a figure we think is rather high. The annoying part is they knew ownership had changed and they sent their letter after the expiry period even sending it to the occupier. The ground rent company have now threatened to advise the lender of the breach in lease unless the transfer is done but the conveyancer is saying the fee is very unreasonable which I agree but I’m stuck in the middle, the ground rent company even said the conveyancer should pay this cost which i can go along with but I kind of side with the conveyancer. Too be hionest I’m happy to pay something just to get it done but this does seem to be over the top, as mentioned it’s coming to the boil now and would like to hear if anybody else has had this problem or indeed has an answer, incidentally the ground rent is only £50.00 a year. Cheers Selkirk Link to comment Share on other sites More sharing options...
Preston Posted November 17, 2008 Report Share Posted November 17, 2008 Hi This kind of "penalty" for breaching (or allegedly breaching) the terms of your lease is called in law an administration charge. Any such charge has to be reasonable and if you disagree with it you can apply to a leasehold valuation tribunal to have it varied. Its difficult to tell without all the information, but if the original fees were £85 and have now been increased to £400 your chances of success seem quite good. Its also important to remember that since 2005 ground rent is not payable until a proper demand has been issued, containing the necessary prescribed information. If they genuinely didnt know you had taken on the lease, then they should have issued a ground rent demand to the previous owner and should now be able to furnish you with a copy and with proof of service. I would ask them for this if I were you. You are entitled to receive this information because in this respect you have "stepped into the shoes" of the previous leaseholder. So, what you might consider doing is telling the conveyancer that you will facilitate an LVT application for them, provided they pay the application fee of course. In the meantime though, you do need them to finish off the job of getting the change in ownership properly recorded and if this means that they must pay the £400 in the meantime, then that is what they will have to do; they need to know that you cant afford to take the risk of further administration charges building up and that it was their error which you are now trying to correct. An LVT application isnt a difficult process and if they have confidence in the validity of your case then they should be willing to take this route. Regardless of whatever else happens, I would also make it very clear in writing to the freeholder that you are now the owner and provide them with an address for service of notices - at least that might help to limit the risk of further admin charges even if your conveyancer doesnt agree with the suggestion I've outlined. Good luck Preston Link to comment Share on other sites More sharing options...
Selkirk Posted November 18, 2008 Author Report Share Posted November 18, 2008 Preston Many thanks, very much appreciated. cheers Selkirk Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 20, 2008 Report Share Posted November 20, 2008 Conveyancer Fxxxxd up, so now he needs to stump up. Any time or further costs can e given to conveyancer for his negligence. The Rodent Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.