Payment of service charge

Hugbubble

I own a leasehold property which I bought in May. The service charge was paid up until end of June as part of an arrangemnt made with the previous owner. Prior to the end of June, I contacted the management company to arrange payment by monthly standing order (which has gone out on 1st July and 1st August).

At the beginning of August I get a letter from the management company saying the quarterly service charge is still outstanding so I phone the company saying I have been paying by standing order, and the lady at the company told me it is just because they don't get their bank statements until 30 days afterwards so the monthly payment that went in on 1st July will show anytime soon.

OK fine, I think. But now I have got a second letter which arrived this w/e saying I owe x amount (the quarterly service charge minus one months value- ha, at least July's payment is now showing!) It also says that unless payment is received by return post they are going to institute legal proceedings.

I resent receiving these threatening letters when I am not in the wrong and suspect that I will be getting them on a monthly basis. If I let them institute legal proceedings against me will I be liable for any costs when I am in the right?

clutton_2

i would send them a copy of the bank statements and ask them to take you to court ....... they will look utter asses if they do ........

Premier_2

Contact the management company and ask them the reason they believe you owe them the money.

From your post, it appears the service charge is usually paid quarterly.

A quarterly amount was due to be paid on July 1st, or thereabouts. However, you have only paid 1/3 of that amount.

There may have been a mis-understanding about how you were paying monthly. Perhaps the management company assumed you would be paying monthly in advance so that the full amount was paid by the due date, rather than in arrears which you seem to be doing.

Hugbubble

Premier wrote: »

There may have been a mis-understanding about how you were paying monthly. Perhaps the management company assumed you would be paying monthly in advance so that the full amount was paid by the due date, rather than in arrears which you seem to be doing.

I maybe didn't make myself clear. I am paying monthly in advance (1st July was for July's service charge). The service charge was already paid up until the end of June through an arrangement I made with the vendor when I bought it at the end of May. (He still owed the quarterly charge for Apr-May, we paid it, it got took off the price of the property).

I informed the management company I would be paying by monthly standing order rather than quarterly, as the residents committee say is allowed.

Debt_Free_Chick

Hugbubble wrote: »

I maybe didn't make myself clear. I am paying monthly in advance (1st July was for July's service charge). The service charge was already paid up until the end of June through an arrangement I made with the vendor when I bought it at the end of May. (He still owed the quarterly charge for Apr-May, we paid it, it got took off the price of the property).

I informed the management company I would be paying by monthly standing order rather than quarterly, as the residents committee say is allowed.

OK, I'm not clear here.

The previous owner owed the SC up to the end of June as you agreed this when you bought the property.

Has the previous owner actually paid this to the management company i.e. the amount owed up to the end of June?

If not, have you actually paid it to the management company? (as you state that you've paid it, but had a reduction in the buying price)?

Do you know for sure that the managment company have actually received payment of the SC due up to the end of June?

Hugbubble

Debt_Free_Chick wrote: »

OK, I'm not clear here.

If not, have you actually paid it to the management company? (as you state that you've paid it, but had a reduction in the buying price)?

Do you know for sure that the managment company have actually received payment of the SC due up to the end of June?

This was all done through my solicitor as part of the conveyancing. Recent correspondence from the management company does not relate to that.

vivatifosi

Hi hugbubble,

I'm a director of the management company for a small estate and would hope that if you were one of our residents we would be talking this through, not addressing the issue through court (yet)... As clutton says, they will look really silly if they issue court proceedings. They will also not want to make a mistake and do this, because then they, not you will be liable for the cost (we would add it to the charge if we had to take someone to court due to serial non-payment) and they don't want to make mistakes that waste money.

However, one thing I will say that we have problems with, is quite often we receive payments, especially through BACS transfer, internet or telephone banking where we have no idea who they are from. We then have to send a standard letter to all households who appear not to have paid (though we do try and mention when we have received such transactions). This is because we don't know when we just get a bank account payment through and just get the basic details which property to reconcile this with. It may also be worth your while checking out whether this could be the reason.

Premier_2

Hugbubble wrote: »

I maybe didn't make myself clear. I am paying monthly in advance (1st July was for July's service charge). The service charge was already paid up until the end of June through an arrangement I made with the vendor when I bought it at the end of May. (He still owed the quarterly charge for Apr-May, we paid it, it got took off the price of the property).

I informed the management company I would be paying by monthly standing order rather than quarterly, as the residents committee say is allowed.

I understood that the SC was paid up until the end of June.

However, I was also led to believe that the SC was usually billed quarterly, although you have come to some arrangemnent to pay monthly.

Under the quarterly billing, a full quarter's charge was due at the beginning of July, yet you only appear to have paid 1/3 of that, and perhaps another 1/3 at the beginning of August. If the management company didn't give you specific authority to pay by staged payments (as opposed to monthly payments) then you owed the full quarterly amount at the beginning of July which still hasn't been paid in full, if I understand you correctly

If you contact the management company, I'm sure they'll be able to explain why the've sent you another letter.

Hugbubble

vivatifosi wrote: »

Hi hugbubble,

However, one thing I will say that we have problems with, is quite often we receive payments, especially through BACS transfer, internet or telephone banking where we have no idea who they are from. It may also be worth your while checking out whether this could be the reason.

Thanks for your reply.

As instructed by the company, I set up the standing orders with the reference number of mysurname+apt number. They mustn't have a problem with this as they have obviously noted receipt of the july 1st payment.

olly300

Hugbubble wrote: »

I resent receiving these threatening letters when I am not in the wrong and suspect that I will be getting them on a monthly basis. If I let them institute legal proceedings against me will I be liable for any costs when I am in the right?

If you have paid them and have the exact dates (which will be on your bank statements) write them a letter, send by recorded delivery and inform them that:
a. you are paying your account monthly
b. then list the date of your payments and the amount
Include your account details and state something at the end that you hope the letter clears up matters, and if they are any issues they should contact you in writing within 14 days.

If they have a problem with your payments then they should contact you. If they ignore your letter and start court proceedings you will have lots of evidence to show you paid the money and have acted reasonably.

Hugbubble

Premier wrote: »

If the management company didn't give you specific authority to pay by staged payments (as opposed to monthly payments) then you owed the full quarterly amount at the beginning of July which still hasn't been paid in full, if I understand you correctly

Sorry for being a bit thick but staged payments versus monthly payments...what's the difference?

Premier wrote: »

If you contact the management company, I'm sure they'll be able to explain why the've sent you another letter.

I suspect because they are next to useless and don't speak to each other (ie the debt collection lady who sent a letter has not spoken to the lady who deals specifically with my building whom I arranged to pay monthly with).