Service Charges Debt

[Alleir]

Hi all,
I own my flat and currently owe the management company about £ 20,000 for services and ground rent. I used to pay my charges in full once a year rather than quarterly or monthly. Unfortunately, I was made redundant two years ago and have not paid them at all. The management company/ Landlord have now appointed a solicitor to collect the monies due. The solicitor, are suggesting them writing directly to my mortgagees to request them to discharge my indebtedness. My mortgage is up-to-date and I have plenty of equity in the property. Can someone please advise the process.... Should I let the solicitor make this request? Will the mortgage company agree to this knowing that I am unemployed? Any help please!!!! thanks

[Alleir]

Re: Service Charges Debt

Anyone there!!!

[nemesis45]

Re: Service Charges Debt

Hi, Have been in contact with the freeholder regarding your inability to pay the service charges and ground rent.
Being unemployed will hinder raising money via the equity I think.
Your question are imponderable one cannot say how the mortgage provider may see the situation, no doubt it will query income and ability to pay an increased level each month.
Is the mortgage provider aware you are unemployed?

nem

[Alleir]

Re: Service Charges Debt

thanks nem,

Have not contacted the freeholder as yet. I have had the yearly budgets, service charge demands and reminder letters. They are not aware that I am unemployed. I fear I left it rather late.
The mortgage provider is aware of my being unemployed.
The solicitor writes that they are under instructions from the freeholder to issue appropriate Court proceedings without further delay. But they also write that they could write on my behalf to the lender to discharge debt. According to the solicitor they are usually successful... but I rather think that being unemployed will make matters very difficult.
Should I contact my mortgage company myself or let the solicitor go through the motion? thanks
Alleir

[wales01man]

Re: Service Charges Debt

Is the Solicitor going to add their fees to the debt? If you think so contact the mortgage company yourself

[nemesis45]

Re: Service Charges Debt

Is the Solicitor going to add their fees to the debt? If you think so contact the mortgage company yourself

I agree, best to be upfront about this.

nem

[Alleir]

Re: Service Charges Debt

Good point about fees. I will contact the lender myself. Can someone tell me what to expect should this matter proceed to court? will I hear from the bailiff next? will they offer a payment plan? thanks
Alleir

[nemesis45]

Re: Service Charges Debt

There has to be a judgement first then only if you fail to comply with the judgement
order can bailiffs be instructed.
A long way from that at present.

nem

[Alleir]

Re: Service Charges Debt

Thank you nem,

I will try to come to some arrangement with the Freeholder in order to repay the debt despite the large sum involved. Perhaps I can argue that in view of my unemployed status a judge would grant a much lower monthly repayment amount than the one I may offer. Furthermore, should a CCJ be issued I would have a record for 6 years. Such mark on my credit file will prevent me once I have a job to remortgage and pay off the debt.
Should it go down the court route and need further advise do I pick up this thread again or start a new one? Sorry I am new to this!!
Many thanks for all the help so far
Alleir

[stevemLS]

Re: Service Charges Debt

Stay on one thread.

Are you paying the service charge for the current period?

You do appreciate that ultimately the freeholder can apply for the lease to be forfeited for non payment of service charges and ground rent? For a debt of that size they may consider it worth taking that route.