Don’t know what to do with leasehold flat !

[Nath G]

Hi I have a leasehold 1 bed flat in Portsmouth bought it around 12 years ago for just over 70k it’s now worth around 130k possibly more.

Have recently started getting some demands for long overdue buildings insurance from the freeholder of the building (building consists of 3 flats inc. mine)
Have spoken to The Leasehold Advisory Service who told me he can’t demand for any service charges over 18 months old.
I am very scared to upset him and have him start to charge for other things by stealth like a new roof on the flat above me etc.
I just wonder if I should try and sell it now or rent it ?
A reasonable property where I live would be around 220k can I use the equity and still have an affordable mortgage ?
Would you keep the flat and rent it out instead ?
Or any other advice would be great as I’m a bit out of my depth with all this thanks.

 

[diyhelp]

I am not sure renting the property out will help the issue as surely you would still be liable for additional charges?

Personally, I assume he has written to you so I would just reply and repeat the advice you were given. Try to keep things as calm as possible and just explain that you are prepared to pay your way for legitimate bills going forwards. If you start paying back bills now, which you are not legally obligued to pay, he might see you as an easy touch and could hit you with other fees you are not liable for.

I would not feel pressured into selling the property as it seems to have been a good investment - but if, aside from the issues with the freeholder, you feel the time is right then by all means go ahead. Do not feel as though you are being pushed out - you have an array of legal protection.

 

[Nath G]

I am not sure renting the property out will help the issue as surely you would still be liable for additional charges?

Personally, I assume he has written to you so I would just reply and repeat the advice you were given. Try to keep things as calm as possible and just explain that you are prepared to pay your way for legitimate bills going forwards. If you start paying back bills now, which you are not legally obligued to pay, he might see you as an easy touch and could hit you with other fees you are not liable for.

I would not feel pressured into selling the property as it seems to have been a good investment - but if, aside from the issues with the freeholder, you feel the time is right then by all means go ahead. Do not feel as though you are being pushed out - you have an array of legal protection.

Thanks a lot for your reply.

Yes I think you’re right about being straight up with him.

The leasehold advisory service told me about section 20B of the landlord and tenant act which seems clear enough.
He’s trying to say I owe buildings insurance and ground rent totalling £478 dating back to March 2016, I understand ground rent I have to pay as he can backdate that 6 years but not buildings insurance.

His exact wording in the demand is:

‘This payment must be made within 21 days as per your lease if not paid in full £60 will be added and interest at 7% will be added as per your lease then we have the right to claim outstanding payments via court or debt recovery’

Surely he can’t do any of that can he ?