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Can I withhold ground rent?


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Hi all,

I bought off-plan a few years ago - the developer ran into financial difficulties but (mercifully) got it over the line. However, we were left out of pocket for several things, including furniture packs that never arrived (~£3k), snagging, advance rent etc.

The developer has since gone into administration, with their major asset being the freehold. We don't expect to see any of the money back that we're owed.

However, the freeholder (through their appointed company) continues to insist the ground rent is due, despite what we're owed. I'm extremely reluctant to pay money to someone who owes me thousands... do I have any legal entitlement to withhold the money?

All help & suggestions appreciated, thanks in advance.

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I would not recommend withholding Ground Rent.

As you are a Leaseholder, aka "Tenant". That means that they can take measures to void your lease. Which may first involve contacting your Mortgage Lender, which will void your mortgage. It's not a nice situation to find yourself in.

Though in your situation it sounds like you have paid £3,000 ground rent in advance (in absence of furniture packs). You may want to ask a solicitor, rather than the forum on how to proceed. As you say it seems weird to be paying someone whom owns you funds.

:wub: Get Mortgage Advice from my Team at Bespoke Finance on 08009202001 or email hello@bespokefinance.info 
:ph34r: 
Please don't take my messages on Property Hub as Personal Financial Advice, just a rambling guy passing time on a Coffee Break.
 

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