Leaseholder taking the michael

rebel rebel · 6 Sep 2019 at 14:55

So we own our flat but there's a small ground rent that needs paying every year. Just a small amount £150.

Today we get a letter saying they have surveyed the grounds and decided that's too cheap and it will now be £250.

But here's the thing, they are charging us £72 for the survey they did last week apparently. But we never had anyone come round and there's no access to the back garden. So already I was suspicious, and then the picture they enclosed to illustrate the fact they completed the survey last week, has my old front door that was replaced in April, and a tree that was cut down over 2 years ago! They took the picture from instantstreetview.com!

It's not about the money, its the principal of them blatantly lying to us.

What are my grounds for refusing to pay?

Participant · 6 Sep 2019 at 14:59

I'd start by writing back to them asking for proof that the survey was carried out, given your evidence above?

rebel rebel · 6 Sep 2019 at 15:06

Yeah I think that's what I'll do. I need to speak to the upstairs flat first see if they received the same letter. Might be easier to complain together.

There's around 200 separate flats and houses down my street. So this is quite the shakedown.

DarrenM343 · 6 Sep 2019 at 17:06

Worth digging out your docs. I owned a leasehold flat and there was a timeline for ground rent increases, like after 25 or 50 years and then same period again until the next increase and the payments already laid out, £50 for first 25 years then £100 for the next 25 years, or something like that, they couldn't raise it willy nilly

.

rebel rebel · 6 Sep 2019 at 18:46

DarrenM343 said:
Worth digging out your docs. I owned a leasehold flat and there was a timeline for ground rent increases, like after 25 or 50 years and then same period again until the next increase and the payments already laid out, £50 for first 25 years then £100 for the next 25 years, or something like that, they couldn't raise it willy nilly .

Thanks, I'll have to dig the deeds out, they're kept somewhere else. I would like to know the criteria for the raise, its not like they do anything for the money.

Participant · 6 Sep 2019 at 18:57

rebel rebel said:
I would like to know the criteria for the raise

Extra costs driven by Brexit

rebel rebel · 6 Sep 2019 at 19:00

Participant said:
Extra costs driven by Brexit

More than likely is the fat cats using Brexit as an excuse to raise it.

DarrenM343 · 6 Sep 2019 at 19:02

rebel rebel said:
Thanks, I'll have to dig the deeds out, they're kept somewhere else. I would like to know the criteria for the raise, its not like they do anything for the money.

Sounds dodgy to me. As the freeholder they should really be paying for the valuation. It's normal to pay their costs if you wanted to extend the lease but they've initiated the valuation for their own purpose.

£100 is a hell of an increase. Yuou can be sure it wouldn't go down if property prices dived too and what if they wanted to do the same next year. Charge again for a survey/valuation?

There's also like a leaseholders ombudsman you can write to if you need to. Might be worth looking up - they handle disputes.

rebel rebel · 6 Sep 2019 at 19:07

I thought paying for the survey sounded dodgy. We paid the fees when we extended the lease 3 years ago. So they shouldn't be charging us now.

I'm gonna investigate this, thanks for the info.

brillcubes · 9 Sep 2019 at 10:07

Don't withhold payment, that will get you onto worse trouble

rebel rebel · 9 Sep 2019 at 12:36

brillcubes said:
Don't withhold payment, that will get you onto worse trouble

Yeah good point, probably a clause where they come and possess the home.

I spoke with some neighbours and they got the same letter with a picture lifted from the internet.

Also found out the home is 100 years old next year, so I'm thinking this has something to do with the raise.

Skillmister · 9 Sep 2019 at 13:00

Check the rent review provisions in your lease

rebel rebel · 9 Sep 2019 at 14:10

Ok so now I have some more info. The raise is to do with the insurance, they say because the home has increased in value so has the insurance.

So I guess that's not so bad. We would like to sell in the next 5 years, as we have a fully extended lease, and would prefer not to pay to extend again in the future.

fastwunz · 9 Sep 2019 at 14:44

you still need to check the escalating ground rent clause in your lease regardless of value

Skillmister · 9 Sep 2019 at 15:17

rebel rebel said:
Ok so now I have some more info. The raise is to do with the insurance, they say because the home has increased in value so has the insurance.

So I guess that's not so bad. We would like to sell in the next 5 years, as we have a fully extended lease, and would prefer not to pay to extend again in the future.

So nothing to do with ground rent

rebel rebel · 9 Sep 2019 at 15:30

Skillmister said:
So nothing to do with ground rent

From what I can gather, and I still haven't seen the letter yet. The ground rent and liability insurance are paid together. And after a survey they deduced the insurance part of this was too low because the property value has risen.

Skillmister · 9 Sep 2019 at 17:00

rebel rebel said:
From what I can gather, and I still haven't seen the letter yet. The ground rent and liability insurance are paid together. And after a survey they deduced the insurance part of this was too low because the property value has risen.

They may be paid together but they are entirely different.

Ground rent cannot be increased unilaterally against the terms of your lease.

Insurance can go up but it still has to match the actual cost of the policy.

rebel rebel · 9 Sep 2019 at 17:15

Skillmister said:
They may be paid together but they are entirely different.

Ground rent cannot be increased unilaterally against the terms of your lease.

Insurance can go up but it still has to match the actual cost of the policy.

Yeah it sounds like its only the insurance part that has gone up. They enclosed a total estimated property value of my flat and the upstairs property. It was originally a 3 story house that was converted into a ground floor flat (mine) and a 2 story apartment above.

I'm going to blame the next door flat being sold for almost double what we paid for ours 4 years ago. Still can't work out how that happened, it didn't even have double glazing.

SeatIbiza · 9 Sep 2019 at 17:25

But if you've fully extended the lease under the 2002 Act, there would be no ground - I am confused...

rebel rebel · 9 Sep 2019 at 17:28

SeatIbiza said:
But if you've fully extended the lease under the 2002 Act, there would be no ground - I am confused...

No ground? Can you explain what you mean please? Do you mean no grounds for a raise in the yearly ground rent payment?