Croydon leaseholders without gas threatened with repossession

Around 19 leaseholders at Admiral Court in Croydon have been without a gas supply since 4 March. The lack of heating and hot water is due to 'potentially dangerous leaks'. Residents have reported being told by Grangeford Asset Management, which acts for the freeholder, that they must pay their full annual service charge within a single day or face repossession proceedings.

The demands follow recent reporting by the BBC that highlighted the bureaucratic issues surrounding responsibility for remedial works. Some residents received emails from Grangeford Asset Management demanding payment of the entire year's service charge, despite having existing monthly payment agreements. The company has not responded to requests for comment from the BBC.

Aggressive demands and legal challenges

Leaseholders were given less than 24 hours to pay the lump sum, with warnings that the landlord would initiate forfeiture proceedings to reclaim their properties. Grangeford stated the demand was based on 'non-payment of service charge as per the terms and conditions of [the] lease'. In addition to the service charges, residents have been billed 'debt collection fees' of up to £1,000.

George Ainsworth, 31, described receiving an email demanding £3,918 within six hours, with a threat of losing his flat. He told the BBC that he and his wife, who is recovering from surgery, have been using buckets of kettle water for washing for six months. He believes the additional charges are 'made up' and potentially intended to cover legal costs associated with the freeholder's pursuit of the original developer, UK Land Assets, which has gone into liquidation.

Russell Conway, a senior partner at Oliver Fisher Solicitors, told the BBC that threats of repossession within days are 'fanciful in the extreme'. He explained that forfeiting a lease for service charge arrears is a complex process that can take up to a year if contested. He advised residents facing such charges to challenge them at the first-tier tribunal, noting that a £1,000 charge for debt collection appears unusually high.

Rising costs and unmet amenities

Residents have described the tactics as 'bullying' and dispute the charges, with some paying due to fear. The service charge has reportedly increased from approximately £1,200 in the first year to £3,500 annually. The original developer, UK Land Assets, is now in liquidation. The freeholder is pursuing legal action against companies associated with the developer to recover costs for remedial work.

Warwick Estates, which usually manages the blocks, stated it was not involved in the current decision-making process and referred inquiries to the freeholder. Grangeford Asset Management is understood to be responsible for collecting service charges and has not commented.

What happens next

Leaseholders facing demands for service charges and debt collection fees can challenge these costs at the first-tier tribunal. Legal experts suggest that immediate repossession threats are not legally sound. Residents without essential amenities like hot water and heating may also have grounds to dispute service charges.