service charge breakdown

factoryphil

hi im having a problem with the maintenance company who are responsible for cleaning etc in our block.
i am trying to get a breadown of the bill from them (solitaire). we have lived here nearly 2yrs and everytime we receive the 6 monthly bill i write to solitaire requesting a breakdown list as it isnt clear what the charges are for.
i have never received one (only further demands for payment) so this time i dug my heels in and refused to pay until they sent me the breakdown.they ignored my letter. now its got to the stage where they sent me a letter stating they will 'commence legal action' if i do not pay within 7 days and have added another £130 to the bill -nice 1- so i sent them a stinking email telling them what i thought of them.
we have had to involve our solicitor and an MP in the past just to get a response out of them.
my question is is it illegal for them not to supply this breakdown information, i heard somewhere they have to provide it by law but cant find anything about it online.
thanks in advance, phil.

PlutoinCapricorn

Is the property publicly or privately owned?

factoryphil

it is privately owned

PlutoinCapricorn

Frequently Asked Questions

I have asked the landlord to send me a breakdown of the service charges as I cannot tell what the service charge was spent on and s/he has ignored me. Can I withhold my service charge until I receive a reply?

You have a right to receive a summary of the service charge. To exercise the right you must first request the summary in writing. Where a landlord has received such a demand he must provide the summary within one month (or within six months of the end of the 12-month accounting period, whichever is the later). If there are more than four dwellings in the building, the summary must be certified by a qualified accountant as a fair summary and sufficiently supported by accounts, receipts and other documents produced to the accountant. Failure to provide a summary of the service charge without a reasonable excuse is an offence and the landlord can be fined up to a maximum sum of £2,500. Notwithstanding the above comments it is worth checking the lease to see if the lease terms place the landlord under an obligation to provide audited accounts.

factoryphil

thanks for the post. the block has 6 apartments.
is there anywhere i can get the information online stating they must provide this info? i need a bit of ammo to fire at them.
i will check the lease and post back.

G_M

A quick google search and I found this. Hope it helps.

PlutoinCapricorn

I would google "service charges"+breakdown+law then ignore all websites with GOV in as they are for the public sector. You will find many other people asking about this problem. Citizens Advice is another possibility.

Have you got any paperwork for the flat that mentions service charges and the conditions?

There is a housing ombudsman too.

PlutoinCapricorn

I have thought of a point that might be relevant here: there has been some collusion between landlords and tenants where the landlord charges a lot for the service charges, which the tenants get paid as housing benefit. For this reason, Jobcentres etc. expect to see breakdowns and proof of expenditure. So companies such as Solitaire must be accustomed to providing such evidence.

There is also the question of estimates and 'actuals': the estimates are often based on the 'actuals' for the previous year, with a bit extra for rising costs. Do you get both types of statement?

Some companies operate a "sink fund" where you are charged a flat amount that is more than the day to day running costs and the surplus goes towards a fund for major works: does this apply here? They should still provide figures about the day to day running costs though.

Solitaire do say on their website that they provide certified accounts.

factoryphil

thanks again for the advice.
i have just found a summary of tenants rights&obligations which must have been sent to the previous owners over 2 yrs ago with a breakdown.
it states:
'this summary must by law accompany a demand for service charge. unless a summary is sent to you with a demand, you may withhold the service charge'.
im not sure if this summary is produced by the government or by Solitaire Housing.
Either way, i have not received one of these letters or a breakdown personally.

factoryphil

yes Solitaire do have a sink fund.
our bil just states service charge and ground rent - thats it. no breakdown whatsoever.

PlutoinCapricorn

It does seem that you have a good case. Who actually owns the flats, could you approach them directly?