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Service Charge Ground Rent Arrears Recovery

Our service includes the recovery of arrears of residential service charges and ground rent following default by the leaseholder as well as allowable client administration charges and interest.

We understand that it is crucial to the efficient running of any property management company that a quick and efficient recovery of outstanding arrears is made. Without a quick resolution, management companies may find themselves under pressure from creditors who have supplied services and utilities to block managed residential units.

We will ensure that action is taken swiftly to minimise any cash-flow difficulties. We will send the debtor a 30 day demand letter forwarding to them authority to approach their mortgage company for payment.   Thereafter, if no response is received, we will write to the mortgagee (where there is one) demanding payment within 7 days. If no payment is forthcoming we will then issue a debt action in the county court. Once judgment is obtained we will again write to the mortgagee demanding payment.

If there is no mortgagee we will provide you with detailed advice as to other enforcement methods.

Should the matter become a defended action then we will agree a separate charging structure with our clients, dependent on the nature of the dispute and its complexity.

We can offer our services at a very competitive rate. You will ultimately be responsible for legal fees, but these are very often recovered from the debtor in any event.

In some circumstances we will be able to undertake work on your behalf on a no recovery no fee basis. The criteria required is:

  • The leasehold interest is registered
  • The property is mortgaged
  • There is a forfeiture clause in the lease
  • The lease allows for recovery of legal fees
  • The debt is more than £350 or consists of or includes an amount that has been outstanding for more than 3 years.


Price List for Block Management Actions

Standard LBA : £100 +VAT

Issuing Undefended Debt Proceedings & Requesting Judgement: £495 +VAT

Additional correspondence with Mortgage Company for settlement £60 + vat per letter (where relevant)

Enforcement of Judgment-

Instruct enquiry agent to obtain status report to confirm routes of recovery - £75 + VAT

Enquiry agent fee - £80.00 +VAT

Drafting and issuing application for Attachment of Earnings Order - We charge hourly rate £175+ VAT for time involved

Court fee for Attachment of Earnings- £110.00

Instructing High Court Bailiffs - We charge hourly rate £175+ VAT for time involved

High Court Writ/Warrant of Control - £71.00

High Court Bailiff fee if recovery is unsuccessful - £75+VAT.

Forfeiture Proceedings

Section 146 Notice: £185+ VAT

Process Server fee for serving S146 Notice – between £100 - £200+VAT dependant on location and speed of service required.

Issuing undefended forfeiture proceedings – £950+ VAT


Dutton Gregory’s Landlord & Tenant Department are able to advise you fully on which methods of recovery are best for you. Contact us on 01962 844333.