Mrs B owned a leasehold maisonette and had contacted LEASE for help with unreasonable charges as she had received demands for payment for arrears of ground rent, service charges, late fees and solicitors costs.
LEASE advised that late payment for arrears of ground rent were only payable if the lease made provision for this and if demands had been correctly served on the client. To be valid Demands must be served either at the property address or at an alternative address given by the leaseholder.
As the managing agent had failed to process a Notice of Transfer from Mrs B’s solicitor notifying of a different address for service, we advised the demands were invalid. Consequently she could challenge the ground rent and late fees.
In relation to service charges, we referred again to the client’s lease. Her lease dictated that leaseholders were responsible for all repairs and insurance of the building. Whilst they could agree to the freeholder insuring on their behalf and reimbursing the costs they were not obliged to do so.
We further advised that no service charge or management fee was payable under the terms of the lease and any legal costs for non payment were also therefore invalid.
The managing agents initially persisted in demanding charges for a property inspection and a management fee as well as solicitors fees for late payment-citing incorrect passages of the lease to support their case.
We advised Mrs B to draft a letter disputing all the charges and referring to the relevant lease clauses. The agents eventually agreed to remove all charges, saving Mrs B a total of over £1000.
Mrs B wrote:
“The Adviser has been amazing. He was prompt in replying, professional, and answered all my questions clearly and to the point in a manner I could understand. This is unusual in my experience. His knowledge and exceptional attention to detail took me from being a terrified and impotent leaseholder to a confident and knowledgeable one; enough to enable me to fight my corner with my management company. He made me feel that ‘I can do this’ ”
