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I have just purchased a shop which is in a block of flats (4…

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Hi there, I have just purchased...
Hi there,
I have just purchased a shop which is in a block of flats (4 residential plus the shop)
With the purchase I also took on the head lease for the building so believe I am now responsible for the maintenance and upkeep of the property.
There Isn't currently a management company in place, the existing head lease holder collected service charges himself from the individual leaseholders.(All the flats are privately owned)
I would like to know how I legally tell the leaseholders and shop tenant I am the new landlord and how I go about collecting the service charge and ground rents.
I have already insured the property and appointed a company to test the fire alarms so really need to get the service charge's coming back to pay for it all.
thanks,
Yasser
Submitted: 7 months ago.Category: UK Law
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Answered in 17 minutes by:
1/10/2018
Solicitor: Aston Lawyer, Solicitor replied 7 months ago
Aston Lawyer
Aston Lawyer, Solicitor
Category: UK Law
Satisfied Customers: 10,798
Experience: LLB (HONS) Over 23 years legal experience specialising in Property law and Wills/Estates
Verified

Hi Yasser,

Thanks for your enquiry.

Your Solicitor should have received from your Seller's Solicitor on completion, the Rent Authority letters addressed to the 4 flat owners, and which is a letter addressed to each of them, and signed by the Seller, explaining that the Seller has sold and that future ground rent payments should be payable to you. If these letters have been received, it is just a case of you forwarding these letters to each of the 4 flat owners.

If these were not received, then all you need to do is to write to all 4, explaining that from X DATE, you are the new Headleaseholder and you will be collecting the rent and service charge payments from now onwards. You are then free to submit your demands for ground rent and service charge on the 4 of them in accordance with the Lease.

I hope this assists and if so, I would be grateful if you could rate my answer in the top right hand corner of your screen.

Kind Regards

Al

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Customer reply replied 7 months ago
Hi Al,
Thanks for the quick response.
I'm not 100% sure whether these letter were receivied by my solicitor so will write to each of the 4 leaseholders myself.
Do these and the demands have to have any specific format or include anything?
Can I just use a standard current account or do I need to register a management company and then open a company account for these to be paid into or can I use a normal current account?
Thanks,]Yasser
Solicitor: Aston Lawyer, Solicitor replied 7 months ago

Hi, the letter to the 4 owners doesn't have to be any set format- merely a letter will e fine. However, every ground rent and service charge demand does have to be in a set format. A professional Managing Agents would be able to assist and send these demands out on your behalf.

As to whether or not you set up a Management Company has to be dictated by what it says in the Lease for the building. If no Manag Company is already in place, I am guessing that the Lease does not make this a requirement, and if so, there is no need for you to go to the expense of doing this. If so, you are free to keep any rents/service charge payments in your own personal Bank account. (Again, I would have hoped that your Solicitor would have advised on your responsibilities and whether a Management Company does need to be set up).

I hope this helps and please do not forget to rate my answer. I would then be happy to answer any further follow up question. Kind Regards Al

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Solicitor: Aston Lawyer, Solicitor replied 7 months ago

Hi Yasser, please don't forget to rate my answer, so I can get credited for my time.

Many thanks Al

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Solicitor: Aston Lawyer, Solicitor replied 7 months ago

Hi Yasser, can I assist you any further? Kind Regards Al

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