Brady Solicitors’ Lydia Anderson has concluded a long-standing service charge case, to the relief of the managing agent, recovering substantial arrears and legal costs.

The mounting debts due to non-payment of service charges were not only having a negative impact on cash flow, but also affecting the smooth management of the block.

The situation

We received instructions from the managing agent in June 2013 to recover £10k of service charge arrears from a leaseholder in a block of flats. Legal proceedings were issued and the claim was defended, but the defence was struck out of court and we received a default judgment for the arrears.

Following non-payment of the judgment, we began possession proceedings but the leaseholder continued to defend the matter and the arrears continued to mount, as did our costs.

Persistence and tenacity prevailed

Lydia’s ongoing collection of detailed evidence against the leaseholder, along with her tenacious approach to the situation and efforts to settle out of court, eventually resulted in a possession order and judgment in April 2015, despite the leaseholder’s lender being added as a second defendant.

The final judgment amounted to £25k, including ALL outstanding service charge arrears to date and legal costs. The lender, as the second defendant, agreed to pay the full amount to obtain relief from possession and our client can finally put the matter behind them and concentrate on getting the management of the block back on track.

Service charge expertise

Long-standing battles with leaseholders over service charge payments can be difficult and draining, but with the right team behind you we can help you overcome these situations and get the cash flowing back into your account. Contact Bradys’ service charge experts to see how we can help you to a successful outcome.