Ground Rent/Service Charge Arrears Proceedings

A Notice will be prepared and served upon the lessee who will be given 14 days to pay the judgement sum and the costs of the Notice. If the Notice is not dealt with on this basis, then forfeiture proceedings will be prepared, dispatched to court and a copy sent to any mortgagee who will be served in due course by the court.

Where there is a mortgagee involved, it will invariably intervene and pay the arrears and all legal fees to avoid its security being forfeited. It will usually only intervene after attempts have been made (in accordance with FSA regulations) to contact the borrower to notify of the intention to make payment on the borrower's behalf if the borrower fails to do so, which payment will be debited to the borrower's mortgage account.

Where there is no mortgagee involved, the forfeiture claim will usually proceed to a hearing because, typically, the position is that the property is tenanted and the forfeiture proceedings will not have come to the attention of the lessee.

The important point to emphasise to managing agents is that, save in the case where there has been an error made on the part of the managing agent and/or any freeholder as a result of which the Section 146 Notice and/or forfeiture proceedings have to be withdrawn, there will be no further cost borne by the client in relation to any steps taken, as we will recover all of our costs either from the lessee or any mortgagee.

Instruction fee of £49.95 only
All other fees are obtained from the mortgagee or lessee.

For more information, call our helpline on 020 3326 5597 or Contact Us Here.