Meridian Management | Case Studies | Collection of ground rent arrears | Meridian Management Services
Meridian Management LP were tasked with the collection of ground rent and service charge arrears on a block of flats. Read how our services provided a solution to the problem...
Arrears
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Are there ongoing service charge arrears at your block? Pembroke Property Management has a successful track record in collecting service charge arrears.

Collection of Ground Rent and Service Charge Arrears

The landlord asked us to review the current service provided by the managing agent for his block of flats in Dartford. The landlord had not received his ground rent for 3 years in a row. There were also significant service charge arrears. There were mounting complaints from leaseholders that the services provided were not satisfactory.

Our appraisal and site visit identified the following issues:

  • Outside lights were faulty and dangerous.
  • The boundary fence was broken, leaving the property unsecured.
  • Hedges were littered with rubbish, weeds had grown on the paths and the communal gardens were very untidy.
  • The refuse area was a mess and the bins were not labelled. For example, recyclable cardboard had been deposited in the bin for garden cuttings.
  • The accounts and financial reports were of a very poor standard and not kept up to date. The block suffered cash flow problems as the previous managing agent had failed to keep track of and chase up service charge arrears.

I instructed Meridian Management to take over the management of my freehold block in Erith in March 2012.  There were 3 years’ outstanding service charge and ground rent arrears, and some tenants were refusing to pay any further monies.  Within 6 months, Meridian Management had managed to collect all the arrears without having to involve solicitors.  I was pleased to finally receive all the overdue ground rents I was owed.  Meridian Management has taken away the stress involved in owning a freehold block and I would highly recommend their services.

The landlord was pleased with our improvement proposals and signed us up on the spot. We had a meeting with the leaseholders to understanding what improvements they wanted to see. We then set a budget and annual maintenance plan with the leaseholders’ approval.

We reviewed 3 years’ of bank accounts to identify who was in arrears with regards Ground Rent and Service Charges.  It was not clear from the information provided from the previous agent. We identified that half of the leaseholders were in service charge arrears with one leaseholder under paying in each of the 3 years. Within 6 months of handover we:

  • Collected and credited the Landlord with all the ground rents he was owed.
  • Negotiated with all those leaseholders in service charge arrears until they agreed to settle their debts, some immediately and others by installments.  We did not need to issue any county court claims or involve an external solicitor – the process was managed by our Legal & Compliance Director.  One leaseholder was delighted to hear that he had overpaid by £525, which was credited to his account.

We have since instructed a gardener and property maintenance contractor from the Dartford area.  They have been very effective in bringing the property up to a high standard of living. Landlord and leaseholders are delighted with the changes that Pembroke Property Management has delivered.

Meridian Management LP is carrying out Block Management in the Dartford area and is looking to expand out portfolio in the area. If you would like to discuss your requirements and how we can help, please call or send an email to info@meridianmanagementlp.com

Meridian Management LP is carrying out Block Management in the Dartford area and is looking to expand out portfolio in the area. If you would like to discuss your requirements and how we can help, please call or send an email to info@meridianmanagementlp.com