Service Charges - Fair?

melonball7980

I have a one bedroom shared ownership flat for which I pay £125 ish a month service charge. For this all I see is the grass cut once a month and the hallway hoovered ever 2 weeks.
When I receive an anual statement money seems to be 'spent' on things that are not 'measurable'. And we are paying for 're-decoration of comunial areas' next year. The flats were only built 2 years ago and there is no problem with ANY of the decor in the hallways.
When I was looking at buying a flat the service charges I was quoted for different flats varied for £10 a month to what I am paying now being the highest.
Whilst I understand that a service charge is required but why are the charges so different.
My friend lives in a 2 bedroom flat and pays £20 a month and is shocked that I pay so much more.

Ideas? thoughts?

TotallyBroke

It's not fair. I too pay service charges but mine are to the local authority. They are kindly replacing windows in the area and charging £7,000 plus for the job.
The costs should be split by a percentage of the properties. Ours is worked out by the rateable value of the property and other stuff that I do not understand. Ask them how the costs are split (we get ours every year with the statement). Your lucky you see the grass cut and the communial area hoovered. I've never seen the grass being cut (but then I do work daytime) and unless the kids come and trash the area straight after the cleaner has been I doubt they have even turned up. I'm so peed off I'm starting to take pictures on a Thursday night and email them to the works boss then on a Friday I do the same and ask them to explain. It's not going down too good but tough.

stevetodd

melonball7980 wrote: »

I have a one bedroom shared ownership flat for which I pay £125 ish a month service charge. For this all I see is the grass cut once a month and the hallway hoovered ever 2 weeks.
When I receive an anual statement money seems to be 'spent' on things that are not 'measurable'. And we are paying for 're-decoration of comunial areas' next year. The flats were only built 2 years ago and there is no problem with ANY of the decor in the hallways.
When I was looking at buying a flat the service charges I was quoted for different flats varied for £10 a month to what I am paying now being the highest.
Whilst I understand that a service charge is required but why are the charges so different.
My friend lives in a 2 bedroom flat and pays £20 a month and is shocked that I pay so much more.

Ideas? thoughts?

That does seem on the high side, where is it? I have 2 x 2 bed flats and 1 x 3 bed flats (others are freehold) and pay about £850 and £950 per annum, and there are 3 lifts to service and quite large grounds with very well maintained gardens and extensive common areas to clean and light. We do however have a co-op management with a paid full time caretakers and a part time manager so it is very cost efficient.

It sounds to me like the leaseholders need to get organised and act as one voice, how many of you's are there?

poppysarah

It was made clear to you when you bought the place how much they were?

I think they're way too high but a local development near me charges that much and for the number of flats they have 9k a month to play with to mow a bit of lawn.
I'd never buy anywhere that needed such high service charges as it's a long term thing. It probably doesn't cover for rennovations either should in 15 years the roof needs replacing.

TotallyBroke

poppysarah It's not always made clear to you when you buy the property. When I bought mine the service charge was £20 per month. Last year I was paying £65 but this year because they underestimated the costs etc I am now paying £93.50 per month that's not including the deficit from last year that I am still disputing with them. And as I said they have informed us off some window replacements and repointing that they will be doing next year. They have estimated the costs at £7,000 but going on previous estimates I'll guess it's going to be nearer £10,000. I will have 30 days from when the final bill comes in to pay this.
I wish I had never bought there either but at the time it was manageable.

chewmylegoff

melonball7980 wrote: »

I have a one bedroom shared ownership flat for which I pay £125 ish a month service charge. For this all I see is the grass cut once a month and the hallway hoovered ever 2 weeks.
When I receive an anual statement money seems to be 'spent' on things that are not 'measurable'. And we are paying for 're-decoration of comunial areas' next year. The flats were only built 2 years ago and there is no problem with ANY of the decor in the hallways.
When I was looking at buying a flat the service charges I was quoted for different flats varied for £10 a month to what I am paying now being the highest.
Whilst I understand that a service charge is required but why are the charges so different.
My friend lives in a 2 bedroom flat and pays £20 a month and is shocked that I pay so much more.

Ideas? thoughts?

is any of this going into a sinking fund to be used for major repairs like replacing the lift or stuff like that? if not it seems very high unless there is a swimming pool, gym and a porter?!

melonball7980

I live just outside Reading as does my friend.

We have a small comunial garden which is just grass.
A small car park which is more like a free for all.
And about 8 plants in a flower bed.
No lift, 3 floors of 4 1 bed flats.
Nothing fancy. No pool or porter!
Part of what we play for is a monthly charge for the sky system but we still have to pay for the usual sky packages.

The charge was made clear when I purchased and has only changed by about £8 since I moved in.

robin_banks

I have very recently pulled out of a SO purchase as an unrealistic valuation was placed on the property.

Ther service charge would have been £150 per month and I am staggered as to what this would be spent on.

Incidentally when we viewed the property the lift was broken.

poppysarah

TotallyBroke wrote: »

poppysarah It's not always made clear to you when you buy the property. When I bought mine the service charge was £20 per month. Last year I was paying £65 but this year because they underestimated the costs etc I am now paying £93.50 per month that's not including the deficit from last year that I am still disputing with them. And as I said they have informed us off some window replacements and repointing that they will be doing next year. They have estimated the costs at £7,000 but going on previous estimates I'll guess it's going to be nearer £10,000. I will have 30 days from when the final bill comes in to pay this.
I wish I had never bought there either but at the time it was manageable.

That's even worse if they start off low - is yours new or much older build to be needing work?

Have you read up on taking over the management of the building?

I know someone who got a quote when he bought his flat in a council block at 125k a month. Partly so high cos there's a lift but the rent on the flats is only 41quid a week so he was making a huge mistake buying his flat imo.
He's been trying to sell it for 70k I think too a couple of years on, but you'd have to be mad to buy it.

melonball7980

As residents we pay them £18000 as service charge a year.
According their statment ;-

Receipts = £9359
Cleaning = £833
Maintenance = £668
Repairs = £710
Miscellanous = £35
Audit Fee = £240
Management Charges = £3060
Insurance = £1200
Total = £7605
Surplus = £1754 doesn't say where this goes to

Estimate for re-decoration £21875
contributions made last year £5426

Where's the over £3125 gone then?

sarah_elton

I pay £64 a month and have done for the last few years - no increases. It's a two-bed flat in Essex.

You do also get buildings insurance for your money if nothing else.

We used to use a management company - CPM. When we had the breakdown, about a quarter of what we each paid went to them for admin. Last year, a group of residents took over, formed a proper company etc and do it all themselves now. I was wary but service has been as good as ever and that £200 a year of mine goes into a sinking fund for special projects instead of CPM's pockets. From 2008-13 they're going round the buildings replacing wood framed windows (80s build flats) with UPVC - homeowners get a discount on market price for new windows and the communal windows get replaced. This will help in future as a chunk of the service fee used to go in the sinking fund for repainting exterior woodwork.