Problems with leaseholder non-payment of service charges.

[LawrenceL]

Hi there. I jointly own the freehold in a Victorian conversion, with the third flat being a leaseholder. We've been having on- going problems with non or late payment of service charges (i.e. ground rent and building insurance). We've tried all approaches (i.e. gently cajoling and patience) but now feel we regretably have to get tough. I believe we can write to the leaseholders mortgage company and inform them that their mortgage holder is breaking the terms of the lease and then recover the fees through them. Is this correct? There seems to be a lot of info for leaseholders about mercenary freeholders, but not much the other way round.
Thanks
LawrenceL

[Poppy]

By all means write to the lessee's mortgage lender. Tell them that if their borrower does not comply with their obligations in the lease you will take legal action which may involve forfeiture. Send a copy of your letter to the lessee, just so they know.

[jeffrey]

By all means write to the lessee's mortgage lender. Tell them that if their borrower does not comply with their obligations in the lease you will take legal action which may involve forfeiture. Send a copy of your letter to the lessee, just so they know.

I agree. However, right to forfeit lease for non-payment is now somewhat limited by statutory hurdles.

[Poppy]

Yeah but there's nothing to stop you throwing in the emotive word "forfeiture" in your letter.

With luck, a letter from the mortgage lender to the errant borrower will produce payment by the lessee.

[jeffrey]

Yeah but there's nothing to stop you throwing in the emotive word "forfeiture" in your letter.

With luck, a letter from the mortgage lender to the errant borrower will produce payment by the lessee.

Let's hope that it does the trick. Often it does.

[LawrenceL]

Thanks for your comments. We'll see how it goes.
LawrenceL