When you extend your lease or if you purchase a new one, there are revisions that should be made. Ground rent and service charges that you will be paying are a starting point.
The ground rent is so insignificant and the service charges don't seem to amount to much 'service' on the property. Why should you be panicking if you can't pay them for a couple of months?
It's as well to be aware: one of the ways a freeholder can use to enforce payment is by applying for forfeiture of the lease. This leads to the hated 'r' word: repossession.
Just as you're considering a lease extension, the last thing you want is for the flat to be repossessed if you fail to pay. Stay calm; you almost certainly still have enough time to avoid losing your lease - and your home.
Before the landlord can forfeit the lease, there are strict procedural rules that must be complied with. When an account goes into arrears, a reminder notice will be sent to you offering an installments plan or advice on how to bring the account up to date. If they account is not repaid within 28 days then the usual process is to receive a second notification giving 14 days in which it should be paid off in full.
If when this time has passed you are still indebted a notice will be served. This will give you a further 28 days.
Naturally, it's a good idea to try to clear the debt now. This will halt the process and any arrears owed can they be paid off. Failure to do so will result in the landlord applying to the County Court. You will also wish to avoid costly court fees.
However, don't press the panic button or start sweating. Try to face your debt in order to resolve it, rather than ignoring it and hoping it will go away. It will not merely disappear.
Look for a helping hand. Try to located a specialist leasehold extension solicitor with lots of experience and knowledge of extension regulations. A skilled professional will support you through this stage and act for you, allowing the stress to melt away. Take his or her advice.
Well, now that you feel more familiar with the process, isn't it better to keep paying that peppercorn rent?
Enjoy peace of mind; the next 99 years of your new lease extension can be safely secured, by you. Take action now by notifying your landlord of your extension to extend your lease this should also encourage an increased valuation in your flat.