HELP: Negotiating price on a Canary Wharf flat with High Service charge!!

huntersc

jig wrote: »

Thanks Doozer girl, rates are high and no worried they are going to inc in the future making this very expensive living. I do like the flat very much, but cant justify these high ongoing costs. Is there any way these can be brought down? or way to insure there is no inc for say the next five yrs? (sorry if these are silly qns)

Thanks again to you all

Well you can try and get assurances from the management company via your solicitor but you're unlikely to get them. However service charges don't tend to suddenly jump by 20% (unless something big needs to be covered). To be fair, these kinds of costs are part of living in a modern block such as the Seacon, it's something you have to expect, it's no different than if you were renting a loft in NYC for example. Concierge costs there are just as high. You need to accept that you're going to end up paying a big whack.

As an aside you might be interested in this:

http://www.housepricespy.com/cgi-bin/search.pl?postcode=E14+8JX&street=&town=&point.x=0&point.y=0

Look what's happened to average prices from the peak of £1.4m in 05/06. Also, as far as I can see, although loads of these flats have been on sale not one has sold since July 08. That should tell you something...

QTPie

huntersc wrote: »

However service charges don't tend to suddenly jump by 20% (unless something big needs to be covered).

I am really not sure about this at all... if you look at my post a few back, ours has doubled this year. Ok we live in a house and not a flat (so are only paying for external communal upkeep) AND the jump was from £200 to £400. But my mother has noticed significant increases in her flat srevice charges. Plus others have noticed it too, recently. I am not sure what is going on and am not challenging my own increase since we have just sold (and are nolonger liable). My mother's Resident's Committee has an accountant (one of the residents) going through their accounts with a fine tooth comb.

These Management Companies serve a purpose and do suit some: minimal hassle and (providing the company are good and so are their sub-contractors) well-maintained communal areas. BUT you do pay through the nose for it and are pretty much at their mercy (i.e. you can't just refuse to pay).

QT

lovelondon_2

I have a friend also lives in seacon tower. Aparently the management company has up the service charge to £5400pa for 2009 ... he is seriously worried about if he will be able to sell his flat in a few years when he plans to leave the country. Service charges tend to go up and never come back down again, in similar blocks down the road, the service charge range from £1800 to £3000, seacon tower's service charge will seriously reduce its potential sale value.

Fire_Fox

jig wrote: »

Thanks Doozer girl, rates are high and no worried they are going to inc in the future making this very expensive living. I do like the flat very much, but cant justify these high ongoing costs. Is there any way these can be brought down? or way to insure there is no inc for say the next five yrs? (sorry if these are silly qns)

Thanks again to you all

Under the Landlord-Tenant Act 1985 service charges must be "reasonable" and must be "reasonably incurred". You should ask to look at the accounts from last year to see where the money is being spent, ask what major works are planned over the coming years, and check out service charges in similar blocks locally.

You can challenge service charges either relatively informally by asking the managing agents to see copies of all invoices and service contracts, by attending the LEASE mediation service or, worst case scenario, a Leasehold Valuation Tribunal.

You may find this helpful:
http://www.lease-advice.org/publications/documents/document.asp?item=14