Service charge and ground rent collection

Assistance to Residential Managing Agents - collection of service charge and ground rent arrears with no charge to you

Overdue monies can have a detrimental impact upon the performance of landlord obligations to provide services pursuant to the terms of residential leases and, in the current economic climate, credit control and the recovery of arrears of service charges and ground rents are becoming an increasingly important consideration for residential managing agents and their clients.

At Franklins Solicitors LLP, our Business Services Department has fast growing expertise and recognition for providing services to residential managing agents to recover services charge and ground rent arrears. By way of example, in a 12 month period we recovered over £150,000 in arrears alone for one member of the Association of Residential Managing Agents. Typically there is no charge to managing agents because, in the majority of cases, legal costs are paid by the late paying debtor leaseholders or their bank or building society. This means that, in almost every instance, we are able to act on a no recovery, no fee basis provided that the leasehold title is registered, the property is mortgaged, there is a forfeiture clause present in the lease, the lease allows for the recovery of legal fees and no genuine dispute exists.

Our services include the recovery of arrears of residential services charges, ground rent allowable administration charges and costs. Initially we issue pre-action demands to the late paying debtor leaseholders, together with their bank or building society. If this does not secure recovery, then we commence court proceedings to obtain judgment so that the relevant bank or building society will make a payment to settle the arrears and costs on behalf of its mortgage account holder.

In order to provide the best service we can, we utilise a tailored case management system to ensure speed of service delivery. In addition, minimal information is required to commence recovery action, with copy invoices or statements of account usually sufficing.

For further information on the services we can offer, please give us a call on 01908 660966. Alternatively you can fill out our online contact form.