Unfair charge for “late” payment for leasehold.

[daveclat]

I put late in inverted commas because I have not seen anywhere an actual deadline, but would assume you get 30 days payment term. Anyway,Â*I was sent my usual annual leasehold on the 1st December for £240.00. I sent a cheque like I normally do and thought nothing else about it. Then early this week I received a letter saying that they hadn’t received payment and after another letter which I had not opened as my wife was in hospital for a couple of days having our first child, they are now charging me a sum of £372.00 due to the additional administration charges. They never answer the phone when I call, it just rings out, so I just sent a cheque for the original £240.00 again with a quick information letter explaining everything which they have just returned to me in the post saying this isn’t acceptable. Is there anything I can do or do I just pay it? Thank you in advance, David

[paulajayne]

Terms and conditions of contract you signed is the best place to start.

[Diana M]

I put late in inverted commas because I have not seen anywhere an actual deadline, but would assume you get 30 days payment term. Anyway,Â*I was sent my usual annual leasehold on the 1st December for £240.00. I sent a cheque like I normally do and thought nothing else about it. Then early this week I received a letter saying that they hadn’t received payment and after another letter which I had not opened as my wife was in hospital for a couple of days having our first child, they are now charging me a sum of £372.00 due to the additional administration charges. They never answer the phone when I call, it just rings out, so I just sent a cheque for the original £240.00 again with a quick information letter explaining everything which they have just returned to me in the post saying this isn’t acceptable. Is there anything I can do or do I just pay it?

Since this is service charges relating to a leasehold property the freeholder (or their managing agent). can only charge you under the terms of the lease. You can't assume 30 days unless the lease dictates that.

There will typically be a clause in the lease which states the date on which the service charges are due each year (or quarterly etc).

There will be another clause which says they can charge a further X% if they are paid after Y days following the due date.

There will be another clause which says the Freeholder can charge (specific or unspecific amount) for collection of late service charge payments.

From what you say your first cheque was never received. Do you know what happened to it? Was it lost in the post? You then sent a second cheque which they have rejected and charged you a further late payment fee. The fact that they've sent the cheque back confirms that they've received it so in the very least you 'paid' by that date (2nd cheque).

Are you dealing with a managing agent? If so check that they're a member of the relevant Ombudsman (most use The Property Ombudsman) so you can make a complaint to the agent and then escalate it to the TPO if they have stepped outside the lease terms.

Or if you don't want the battle you could try to come to some middle ground settlement which needs to be in writing so they can't say you've breached the terms of your lease.

Di