I can’t remember exactly how many years ago when we started to call Debtors - Customers. I can go back 9 years easily. It was a change for the better and a fundamental driver to culture change in the collections and recoveries world. One area that seems to have kept a low profile in this area is ground rent debt recovery where the terminology and the concept of TCF hasn’t quite landed. Hopefully it now appears to be getting on the radar of regulators and therefore something that commercial and corporate landlords must now pay closer attention too. This work has long been outsourced on 0% or nominal commission rates with ‘fixed fees recoverable from the leaseholder’ being the revenue stream behind the process. The rates charged, the accelerated process and the ultimate debt recovery tool ‘forfeiture of the lease’, do need review, and whilst the ground rent needs to be collected and paid - it’s the how it’s being done and possibly by whom, is where change is needed.
LKP is aware of debt collecting solicitors chasing these, and adding costs, getting them up to £600. What is needed is: stop creating more leasehold.” According to the ministry of housing, communities and local government, there are about 4.3 million leasehold dwellings in England, including 1.4 million houses. Numbers have jumped sharply in recent years due to an increase in apartment building in cities, and the practice of developers selling new build houses as leasehold.
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