PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Change in management expenses terms from new management company query

Options
I live in a flat so have been responsible for paying a percentage of management company expenditure for many years - when that company got involved with the property, they saw no need for a typical annual management fee. If and when works were needed, they would simply increase the amount to pay - so as such, the management fee was based on % of expenditure. I also was paying ground rent to them as part of the conditions of my lease.

Two years ago, my main contact at that company informed me that there would be a new company involved with the management of the property, which he was involved with. He assured me that terms of payments would not change, obviously something which I should asked for in writing. By this point, the ground floor had been converted from a shop to there being two flats - it was not something that particularly bothered me, thinking that it would also add value to my flat with it now not being above a shop.

I have not received any demands for my share of buildings insurance or ground rent for two years, despite chasing it up many times (I did know that buildings insurance was active on the property though). After chasing it up again before Xmas, I finally received an invoice. This also has an annual management fee charge, which has surprised me. Having queried this, pointing out that I was told that there would be no change from previous arrangements, I have simply been told that this company pass on all expenses at cost and charge a flat fee annually.

Is this something which I can legally challenge? In all fairness, the annual fee is not much - but there has not exactly been active management of the property.

Comments

  • eddddy
    eddddy Posts: 16,443 Forumite
    First Anniversary First Post Name Dropper
    Options
    JJAM wrote: »
    Is this something which I can legally challenge? In all fairness, the annual fee is not much - but there has not exactly been active management of the property.

    The first step is to read your lease. Does it allow for a management fee to be charged?

    If it does, the next question is whether the management fee is 'reasonable'. (The law requires all admin fees to be 'reasonable'.)

    One way of deciding whether it's 'reasonable', is to compare the fee charged by other agents for similar blocks.

    You can challenge the fee if it isn't reasonable.
    See: https://www.lease-advice.org/faq/what-can-i-do-if-i-disagree-with-an-administration-charge/

    FWIW...
    JJAM wrote: »
    He assured me that terms of payments would not change, obviously something which I should asked for in writing.

    ... this doesn't really make any difference. It's what your lease says that counts.
  • JJAM
    JJAM Posts: 56 Forumite
    First Anniversary First Post Combo Breaker
    Options
    It's reasonable, but the way it's been introduced certainly is unreasonable!

    I will refer to my lease, but am sure that it allows for such a fee to be introduced.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards