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Incorrect ground rent backcharged without evidence

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  • Incorrect ground rent backcharged without evidence

    I bought my apartment, located in E14 London, in 2013. I have paid £150/yr ground rent, with payments of £75 every 6 months or so. (I have never missed a payment.). A few months ago, the property managers notified me that the ground rent was increasing to £425/yr (almost 300% increase). I challenged the increase and they said "it's not 290%, it's 170% since you have been paying £250/yr). I said "No, I have been paying £150/yr and your records prove that". They then issued me with a bill for > £600 for the £100 shortfall for the last 6 years of unpaid ground rent: "We note that we have charged the annual rent at the rate of £150. Unfortunately, this figure was incorrectly noted on our system, and we have updated our records accordingly. Please note that as the additional amount of £100 per annum was not collected, we have amended your account to reflect this and you will receive an invoice in due course requesting the balance of £641.91."

    Question: If a bill is issued (for 9 years) and paid on time (every time) how can a business decide the amount was wrong all along and make me liable for it? There is zero evidence that I underpaid the ground rent (I have asked for that, to no avail). The larger question is how can any business change their mind on a billing amount (years later) and then decide to back charge?

    I appreciate ground rent has a limitation of 6 years (if no payment made), but they could have plucked any figure out of the sky. They sent me 18 bills, I paid 18 bills - now they want to re-issue the last 12 bills?

    Any advice appreciated. I have to say there is a tone of arrogance about it - the message is "we mess up - YOU PAY"

    Rgds - Guy
    Tags: None

  • #2
    The original lease you had when you purchased will state exactly what the ground rent is to be. In many leases, the ground rent has a built in increase which has to be included in the Lease and cannot be changed, even if they have messed up when selling it. The terms are the terms.

    May I suggest that you carefully look through the document to see if an increase was included. If it was not, then the landlords are unable to make the charge and if they try to force matters, then your solicitors can help you challenge it. However, if there is an increase wording in the Lease, you will have to pay it eventually, but could argue that you can only afford to make the loss up in gradual stages as they did not update their notice to you.

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