July 08, 2019

Collecting Service Charges interview with Laura Severn of LMP

31 minutes

‘As a leaseholder, you must pay your service charges, irrespective of the service, it’s in your lease pay it’

In this episode, Desmond talks to Laura Severn from LMP about service charges and what happens when they are not paid.

Their informed conversation provides an insight into the effect non-payment has on the different parties involved.

If you are a leaseholder or a block manager listen in and find out what really happens with service charges, why we need them and what happens when they are not paid.

KEY TAKEAWAYS

What are the main benefits of paying service charges?

The reason you pay is to maintain the building you are living in. When they are not paid multiple jobs are suspended due to a lack of money to complete the work.

If you are, as a good tenant paying but your neighbour isn’t, you may in time also not pay because you can’t see the level of maintenance you would expect. This is where the problem arises, people often perceive that there is a pot of money available for tasks, this is not correct, the service charges go directly for the payment of required maintenance activities.

At LMP what’s the process of collecting service charges?

It can be system driven, but with this type of debt collection, there is a way to do it. The initial part is investigation followed by courts and litigation if there is still no resolution the process ultimately ends with forfeiture.

It's important to understand the 2 groups of non-payment – the can’t pay and the won’t pay

Can’t pay – financial difficulties, how can we work with them to bring a resolution.

Won’t pay – why won’t they pay? We investigate to understand why they won't pay.

Putting aside the financial implications what’s the most damaging aspect of litigation?

It’s a miserable situation and your home is at risk. The length of the process and proceedings results in everyone losing.

There is a commercial reality, it is the law and a forfeiture hearing is the end of the process, but there is a human aspect to the process.

You got to view paying your service charge in the same way as paying your mortgage, it must be deemed as important, the consequences of not paying are potentially the same.

Not paying your service charge is not the way to change an aspect of maintenance you are not happy with.

Service charges are paid on account so it's vital they are paid as demanded if after a year you really feel things aren’t right then you can use the systems in place to dispute.

BEST MOMENTS

‘There is no pot of gold at the end of the rainbow, there is no credit if you don’t pay there is no money available’

‘It’s lose, lose for everyone’

‘They want you to try and settle it, that parties have talked’

‘If you are a leaseholder your lease is a form of protection that can be used if required’

VALUABLE RESOURCES

More With Moreira Podcast

http://www.lmp-law.com/

ABOUT THE HOST

I don’t know how this works, but you’re here now listening (hopefully) about my

exciting life, so I’m going to try and make this worth your while. I never got

inspired at school, I was too busy trying to impress my peers, chasing girls,

and being a fool to get inspired. I rejected school. But let me tell you

something for free! That was a mistake! I spent the next 15 years in jobs I

hated, with no direction, lacked purpose, and motivation for life. Yes, big

words, but that was me in a box. A slave to the system! Fast forward to today,

and well, I’m not sitting in my ivory tower or anything, but I love life and my

career. Yeah, it’s both painful and exciting rolled and wrapped up into one

giant subway, and who doesn’t love subway rite? The point is, you only get one

life, don’t waste it pursuing things you care nothing for, invest in YOURSELF

and grow as a person, be the best YOU by putting YOU first!

CONTACT METHOD

http://desmondmoreira.co.uk

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By Desmond Moreira