Leaseholder service charge arrears

rlchew

I am not sure where to post this request for advice so I hope it is in the right place.

I have read a number of discussion threads here which relate in part to the problem that I have and this has added to my previous knowledge from my own occupation as a housing manager at a local authority and other research on the Internet.

However, I do need clarification on some points …. and of course any other helpful suggestions and recommendations that you can wing my way!

Here is a summary of the issues ..... sorry, it is a long story!

· I am a leaseholder resident in a block of flats and under the terms of the lease there is an obligation to pay service charges in respect of the usual expected items including contract maintenance.

· Following the purchase of my flat in February 2002, xxxxx were instructed to act as managing agents on behalf of xxxxx Management Company Limited.

· xxxxx took over the role of managing agents in November 2007.

· There has been a long-term dispute over the standard of contract maintenance, specifically window cleaning only partially undertaken or not undertaken at all and a catalogue of excuses and non-responses to complaints.

· I withheld a proportion of service charges in 2006 and 2007 as a last resort due to xxxxx’s refusal to ensure a high quality and value for money service in accordance with the lease obligations.

· I calculate my service charge arrears to be £373.91. I have made numerous offers to immediately pay any outstanding balance following a refund for the poor and absent service.

· A letter issued on 19th February 2009 by a debt collection company on behalf of xxxxx Management Company Limited and the managing agents xxxxx claims an amount of £805.01 including their costs of £146.88 (for sending one letter!). The letter states that solicitors will be instructed to act in taking debt recovery proceedings in the County Court and that my mortgage lender will be advised of the arrears.

· The only written notice from the managing agents xxxxx regarding the arrears was on 18th December 2007 with a reminder on 21st February 2008.

· There has been no other notification in the last year other than a very bullying verbal threat in a public and open AGM of xxxxx Management Company Limited the day prior to the letter from the debt collection company.

· The managing agents xxxxx have consistently refused to enter in to any discussion regarding the service charge arrears, the basis for them, the offer of a refund/credit for the absent service made by the former managing agents xxxxx in July 2007 or my offer to pay any balance following the refund/credit.

· The alleged service charge arrears do not account for all the service charge payments that I have made since 2002 and the managing agents xxxxx have refused to provide a proper statement of account showing those payments.

· The managing agents xxxxx have refused to acknowledge a request for a 1-2-1 meeting at their offices to discuss the issues or, in the absence of that, a facilitated Leasehold Advisory Service mediation session.

· The debt collection company have now sent me 5 separate threatening letters regarding this matter and have refused to acknowledge that there are 2 ongoing disputes around the promised refund in respect of poor and absent contract maintenance and service charge payments that have not been accounted for.

I am proposing to take the following action:

· Submit an application to the Leasehold Valuation Tribunal for a determination of the reasonableness of the service charges and the liability to pay them. Before doing so, I am also investigating other aspects of the service charge demands, both their legal content and the value for money of contract maintenance, insurance, management fees, etc. I am aware of my legal rights here and how to progress an application to the Leasehold Valuation Tribunal. However, does anyone know of any other action that I can take against the managing agents? The managing agent is not a member of the Association of Residential Managing Agents and nor have they subscribed to the Housing Ombudsman service …. I wonder why!

· With regard to the debt collection company, I have read the OFT guidance on debt collection (and there are some clear breaches, not least in pursuing an alleged debt that is in dispute) and I am aware that both the Financial Ombudsman Service and Trading Standards have jurisdiction to deal with complaints against debt collection companies licenced under the Consumer Credit Act. However, does anyone know if the OFT'S debt collection guidance applies to the type of circumstances I have described or is the scope of that guidance limited to contracts under the Consumer Credit Act (e.g. store credit agreements, credit card agreements, etc.)? Obviously I do not want to waste time compiling and submitting complaints to the OFT, the Financial Ombudsman Service and Trading Standards if the debt collection guidance is not applicable to my situation.

I would be extremely grateful for any advice that anyone can offer.

I have gone through the panic stage when I received the first debt collection company letter warning of County Court proceedings but I am now getting exceedingly annoyed at this matter consuming my life …. and my printer!

Richard

Doozergirl

How many flats in the block?

It would be far less time consuming to sack the agents than it would be to go to the LVT - that only costs money and at the end of all of this you still have a managing agent that you are unhappy with. There's no moneysaving sense in going to the LVT at all.

rlchew

Doozergirl wrote: »

How many flats in the block?

It would be far less time consuming to sack the agents than it would be to go to the LVT - that only costs money and at the end of all of this you still have a managing agent that you are unhappy with. There's no moneysaving sense in going to the LVT at all.

I agree that this would be quicker and cheaper but the problem is that the other residents in the blocks (18 flats in 2 blocks) are apathetic at best and seem to blindly accept the service they are receiving (or not receiving) and presumably pay all their service charges without question.

I guess I need to convince them that they do have rights to challenge service delivery and quality and the service charges being levied.

oldone_2

I think you need to go on the offensive. Write to the management company telling them that unless they address the numerous issues you have raised, you will canvas and obtain a majority of the rest of the flat leaseholders, with a view to sacking them and putting in place a more effective management company.They are not to know of the apathy of the rest of the residents.

You should be prepared to follow this through and get the rest of the residents on your side.

With debt collector letters, you need to respond by telling them the debt is in dispute, and should be returned to the originator, which they are obliged to do.

sunnysea83

Your managing agents wouldnt happen to be Circle Mangement would they?

If you were to make an applicaiton to the LVT then they would determine the reasonableness of the service charges, whether the charges are payable under the terms of your lease etc. You could also make an administration charges application for the additional charges that they are charging you regarding the outstanding arrears.

rlchew

oldone wrote: »

I think you need to go on the offensive. Write to the management company telling them that unless they address the numerous issues you have raised, you will canvas and obtain a majority of the rest of the flat leaseholders, with a view to sacking them and putting in place a more effective management company.They are not to know of the apathy of the rest of the residents.

You should be prepared to follow this through and get the rest of the residents on your side.

With debt collector letters, you need to respond by telling them the debt is in dispute, and should be returned to the originator, which they are obliged to do.

I will be trying to engage the other residents at the weekend, not least because the 2009 service charge demand has now arrived and I think everyone is entitled to know what their rights are in terms of service quality, value for money, complaint handling, etc. etc.

With regard to the debt collection company, I have now submitted complaints to the OFT and the County Council Trading Standrds Department and will shortly be submitting a complaint to the Financial Ombudsman Service. I have no idea how effective that is likely to be but at least filing fully documented and evidenced complaints made me feel better!

Richard

rlchew

sunnysea83 wrote: »

Your managing agents wouldnt happen to be Circle Mangement would they?

If you were to make an applicaiton to the LVT then they would determine the reasonableness of the service charges, whether the charges are payable under the terms of your lease etc. You could also make an administration charges application for the additional charges that they are charging you regarding the outstanding arrears.

No, the managing agents are Property Manager UK based in Kent .... but only a very slight link to "property management"!

I am certainly considering an application to the LVT to resolve the specific issue that is in dispute but before doing so I want to gather additional evidence on other aspects of the service charges (e.g. obtain other quotations for contract maintenance and insurance). I might as well submit complaints on as much as possible all at the same time!

Richard

rlchew

Further and related developments on this .....

I am hoping someone can advise me in respect of the service charge demand for 2009 and statement of account that I have received in respect of my flat.

I have received a very short letter from the managing agents on behalf of the management company.

The letter contains the following information:

· The address of the managing agent (but only a PO Box address)

· The name of the management company but no postal address at all

· A reference to the AGM of the management company in respect of a demand for payment of £997.27 in service charges for 2009 (a summary budget for 2009 was circulated at the AGM but a copy was not provided with the service charge demand for the benefit of the majority of residents that did not attend the AGM)

· Bank account details for payment

My questions are as follows:

· Should the service charge demand for 2009 have been accompanied by a summary of the proposed budget for 2009?

· Should the service charge demand have included the full postal address of the management company? My understanding is that ss.47-48 Landlord and Tenant Act 1985 require this. Is this correct?

· Should the service charge demand have included a summary of leaseholder rights and obligations? I understand that s.153 Commonhold and Leasehold Reform Act 2002 requires this from October 2007. Is this correct?

· If the above-mentioned legislation does apply, is it also correct that a failure on the part of the management company or its managing agent to comply entitles a leaseholder to withhold service charge payments until there is compliance with the statutory requirements?

Given that the 2008 service charge demand was equally vague, it should be fairly obvious why I am asking these questions but also why I need to be sure of my legal position.

In addition to the letter, a brief summary statement of account was also enclosed.

I have a long standing dispute over alleged service charge arrears and the summary statement provided to me continues to include a sum that I do not owe.

I have asked the managing agents on numerous occasions to provide a detailed statement of account showing individual service charge payments that I have made since as far as I am concerned not all of my payments have been accounted for.

The managing agents have not supplied this information but continue to instruct a debt collection company.

Could someone please confirm whether it is appropriate to submit a subject access request under s.7 Data Protection Act 1998 to the managing agent? Would this require the management company or its managing agent to provide evidence of each and every transaction on my service charge account?

I hope someone can help …. many thanks.

Richard