Shenstone Properties...ground rent demand?

[MrsC2010]

Hello all,

I wonder if someone can help me, I own a flat that I currently rent out with no issues.

I bought the flat 2 years ago and was informed that there was a peppercorn ground rent of £5 p/a, but this had never been collected since the property was converted to flats in 1983. The landlord had been declared 'absentee' as a result. As such my solicitors took out an absentee landlord indemnity policy just in case, and a buildings indemnity policy to allow me to look after the fabric of the building were my fellow leaseholder not to.

Since buying the property I have heard nothing more about it. Until this letter, which states:

"We write to you regarding an outstanding debt on the property that you currently reside in and would in the first instance request that you contact us upon receipt of this letter as a matter of urgency as there is a debt on the above property for which we have received a county court judgement.

Our next course of action is to continue through the courts to the extent that forfeiture will be gained regarding this property and ultimately the ownership of the property could be returned to us.

To you, this will result in you having to find alternative accommodation.

Etc etc."

Now, as far as I am aware there has been no forfeiture as there has been no request... Looking at the land registry the original house was once party to a freehold/leasehold agreement back in 1911 with different people/companies but the current flat is party to this peppercorn agreement with a named man who obviously converted the property in 1983.

I am going to call them in the morning but have been trying to dig around a little. The letter doesn't even state what this debt is about, but the only reference I can find on this company (no website ) is various threads on consumer websites about their dodgy tactics, specifically to do with ground rent so I have put 2 and 2 together...the letter gives nothing away! If they are not forthcoming/helpful I'm tempted to refer them directly to my solicitor who has the insurance paperwork etc I think.

There was even a House of Commons debate about 'ground rent grazers' about 10 yrs back naming them specifically.

I guess I just wondered if there was anyone out there who knew abything about this sort of thing? I have no objection to paying £5 per year ground rent at all, but I would object to paying it a company I've never heard of, have no paperwork with etc. If I pay them ground rent surely they then have responsibilities towards me as a leaseholder etc? Surely there must be paperwork, not just this final-seeming demand?

Stress!

To Oakleaffy,
on Nov. 29 2022 before contacting Shenstone Properties, I rang the Land Registry (0300 -006-0411) to enquire if Shen. Prop. had contacted Land Registry about my deed and they replied that, in fact, the deed was now in my name and had been since 2020!
Land Reg. said either Shen. Prop. or their Solicitors would have the deed.
Later, phoning Shen. Prop. about my deed was the usual waste of time as I found they only answer the phone from 10 a.m. till 12 noon due to staffing problems.
I suggest you call the Land Registry if you have any issues about your deed.
Graham

Hi just wondering please was it easy processus to buy the freehold from them if you can answer will be much appreciated thank you 😊

Anna20,
yes,it was reasonably easy to get the freehold but Shenstone dragged their feet a little.
Call them (their telephone hours are only 10 a.m. until noon) and ask how much is the payoff. They won’t accept any less but there is a possibility they may accept a payment plan over a period of time.
Send them the cheque and then wait for them to send the Property Title.
In my case, it took a very long time because they were sending mail to my previous address.
Shenstones lawyers are based in Liverpool.
Good luck and if I can be of further help, please contact me.
Regards,
Graham Watson

Hi Graham, we are looking at buying freehold from Shentstone too. They have sent us a purple application form with a series of terms and conditions on the back. Did you use this form too? I want to query some of the terms of conditions, so that may delay things further. However, I wonder if you would be willing to share how long it took you from start to finish?

Would be interested to hear how people resolved demands from Shenstone.

We have an older friend. She bought a flat a year ago in a small retirement housing block which was advertised as being for the over 60s. She was 61 at the time. She has been very happy there until last week when she received this letter from the freeholder Shenstone Properties Ltd.

"We write with reference to the above property and to advise you that there is a problem with your acquisition of this property. Following you providing your passport it is evident that you are not of pensionable age and it is a prerequisite requirement that prior to being able to acquire a flat in this block, which is a retirement block, you must be of pensionable age. Your Solicitors will have been well aware of this as they will have had a copy of the Lease and yet they have allowed you to complete your purchase knowing full well that it is unlawful and that you are now in Breach of Covenant under your Lease.
Whatever action you wish to take against your Solicitors is a matter for you and not for us but we have to state to you that we cannot accept your acquisition of this property as it renders you in Breach of Covenant and we would have issues brought to our attention by the other residents in the block who actively check the validity of tenants as they move in and therefore we would have to ask you to vacate the property and put the property back on the market and again it can only be sold to someone of State Pensionable Age.

At the moment, we are taking legal advice from a leasehold specialist but it would be interesting to know how Shenstone might take things from here.

@waribai I would recommend starting a new thread. This is a very different issue to paying ground rent even if it is the same company.

I would also like to post an update to say that Shenstone Properties ltd now accept ground rent payments by bank transfer. The days of cheques are now over!

AlexandJess,
please accept my apologies in not replying to your question on 28/7/23.
I realise your question is now 18 months old.
For some reason, I didn’t see your question but there again I don’t go on this thread on a regular basis.
I can’t remember the exact style and details of the form but from what I remember, from application to receiving the freehold took about 2 yrs. but a lot of that time was taken up by mail going to the wrong address.
With luck, your experience will be much shorter.
Regards,
Graham

Seek legal advice.. 60 used to be pension age, the age limit hikes up every year, it seems.

I'd definitely not buy anywhere where this company is in any way involved.
They seem to rely on scare tactics and ''legalese'' language to frighten the average Joe.

Sounds dodgy to me.

Presumably your friend is a quiet person, why on earth would other residents have reported her youthfulness ?
Many people 'retire' at 55.
It's retirement home, why did they sell it to her?

Just at a guess, I'd be thinking they will want money from her.

Google the name.

@waribai

www.mumsnet.com/talk/legal_matters/955622-Shenstone-Properties-ground-rent-demand

@GRHMWATSON Thank you, Graham.
Only seen this as elsewhere on mumsnet people are having issues with Shenstone.

I didn't realise that this was the old 2010 thread.
Sorry for any confusion.

Thanks for the input. Yes, I think they are hoping for her to go down on her knees and beg. I suspect they knew when she moved in this was the situation and decided to reveal their hand at an opportune moment. Specialist seems to think it is resolvable and ultimately the conveyancer will be liable. However, understandably our friend feels quite stressed and vulnerable.