Default under your lease

Failure to pay the Ground Rent, buildings insurance contribution and/or Service Charge promptly on request may result in all or any of the following:

• You incurring:
  • a late payment administration charge if we (as the landlord’s agent) have to chase for payment.
  • interest on the debt (charged at 5% above the base rate of the Bank of England).
• You may be subject to debt recovery action, including having a County Court
  Judgement made against you.
• We may refer the matter to your mortgage lender (who will in most circumstances pay the debt on your behalf to protect their interest in your apartment).
• You may incur responsibility for the landlord’ legal costs if the matter is referred to a solicitor.
• In certain circumstances your landlord could instigate forfeiture proceedings as
  described in your lease, which could ultimately result in repossession of your apartment.
• Failure to pay your building insurance contribution on request may also affect processing of any claims you might be entitled to make under the buildings insurance policy.

Our administration charges (fixed for the year ending 30 June 2012, but thereafter subject to review) are as follows:

• Late payment fee: £7.50 per letter
• Issuing notice of intended proceedings: £15.00 per letter
• Issuing proceedings: £135.00
• Recovery of a debt from leaseholder’s lender: £135.00
• Other debt collection costs will be based on the task at a rate of £90 per hour.