Service Charges: Potentially Reclaim Overpayments. One MoneySaver got £400 back!

leaseholderhelp

Thanks for posting this Fire Fox!

As I previously posted in this thread, if you haven't received your Summary of Rights then this means that you may withhold the payment of your service charges. The law is contained in the new Section 21B of the Landlord and Tenant Act 1985 which (as amended) reads (my emphasis):

21B Notice to accompany demands for service charges

(1)A demand for the payment of a service charge must be accompanied by a summary of the rights and obligations of tenants of dwellings in relation to service charges.
(2)The Secretary of State may make regulations prescribing requirements as to the form and content of such summaries of rights and obligations.
(3)A tenant may withhold payment of a service charge which has been demanded from him if subsection (1) is not complied with in relation to the demand.
(4)Where a tenant withholds a service charge under this section, any provisions of the lease relating to non-payment or late payment of service charges do not have effect in relation to the period for which he so withholds it.
(5)Regulations under subsection (2) may make different provision for different purposes.
(6)Regulations under subsection (2) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

leaseholderhelp

Fire_Fox wrote: »

ArsenalsJenkins

I don't believe your managing agents have the right to charge leaseholders to view documentation related to your service charges under the Landlord-Tenant Act 1985 EXCEPT when they are responding to solicitors in conveyancing matters. Check with the LEASE Advisory Service on this.

This is not necessarily correct and you may be confusing service charges with administration charges. You need to read your lease for any specific provisions but also be aware that Section 11 of the Commonhold and Leasehold Reform Act 2002 defines and administration charge as an "amount payable [by a flat owner] ...for or in connection with the provision of information or documents by or on behalf of the landlord or a person who is party to his lease otherwise than as landlord or tenant". So, basically your managing agent may be able to charge for providing this information, although the charge will also be subject to reasonableness.

As a matter of policy, this strikes a fair balance because a managing agent managing a large portfolio could be faced with many hundreds of such enquiries for which they would otherwise not be able to recover their costs or those costs would be passed onto the building as a whole making it more expensive for everyone.

leaseholderhelp

Fire Fox - Thanks for your post - I'm already in touch with Martin and the team who have confirmed:

"We're very happy for you to post on there to give your help without any special signature etc from us"

Also, on a point of important clarification - I'm only posting for general information purposes only - my posts do not constitute legal advice and should not be relied upon as such nor are they a substitute for obtaining the appropriate professional advice (whether from a lawyer, surveyor or otherwise) from whoever that may be.

dollydaydreams_2

BigPR wrote: »

This is so timely for me (perhaps because of the credit crunch). I own a propert in Canning Town, East London. Newham Council has contracted Pinnacle to manage my block and a few others in the area. Out of the 10 flats in the block, I'd guess that 50% are bought on Right to Buy (incl. mine). Recently, despite the usual abracadabra that this company does with its estimated and actual charges, I have been receiving bills for works which either have been or are expected to be done.

Can anyone PLEASE let me know if these managing agents are under obligation to consult with leaseholders before any work is done? Who decides that something needs to be done. I just don't understand why a clean and perfectly tidy communial area needs a new floor, treatment and all else. Can we stop them from carrying out the work?

The most shocking trick I only noticed today is that ANOTHER "Qualifying Works" notice was received today (22 July 2009). However, at the end of the notice it says "Your comments and responses to this Notice must be received within 30 days from the date of this notice. Your observations must be returned no later than 9th July 2009".

I then looked at the issue date of the letter/notice. It was 9th June 2009. I am getting the letter more than 30 days after it was issued by which time my right to object or make observations has lapsed. I cannot understand what is going on.

I first started paying £76.32, now I am paying £168.41. With the new bill notice I will be paying around £250 per month. This is because I always insist on spreading any bill over the maximum period which is about 2 years. They just seem to be doing one work after the other which appears to be quite unecessary.

Big PR, I am a leaseholder with Lewisham and they have contracted pinnacle also. So far they have been incompetent on every level.

We have had some of the proposed work done and it was of an apalling standard. Scaffolding was up fo much longer than necessary (for which we are being billed), front of our property was painted a totally different colour to neighbouring properties so it now looks out of keeping (we're in a conservation area), paint job was terrible - splashes of paint on our walls, peeling already after 3 months etc etc. We have denied them access for some of the other work they wanted to do as that completed so far is of such poor quality.

Communication is a joke and we have had to get to stage 2 of a formal complaint procedure twice just to get any response to basic queries. As for the bill - when I enquired as to a payment plan I was told that I will have 10 months to pay. This is the ONLY option available. Given my estimated bill is about 9k and I am on a relatively low income it is comical to expect me to find a 'spare' £900 per month! When I pointed this out and told pinnacle that my mortgage company would not allow me to borrow any more the werbal response was "DON'T BE SILLY" !!!

There are about 20 leaseholders taking pinnacle to tribunal in Brockley but I missed the deadline for joining. Not sure what to do now really - can't afford to go it alone.

Nightmare isn't it?

Fire_Fox

leaseholderhelp wrote: »

This is not necessarily correct and you may be confusing service charges with administration charges. You need to read your lease for any specific provisions but also be aware that Section 11 of the Commonhold and Leasehold Reform Act 2002 defines and administration charge as an "amount payable [by a flat owner] ...for or in connection with the provision of information or documents by or on behalf of the landlord or a person who is party to his lease otherwise than as landlord or tenant". So, basically your managing agent may be able to charge for providing this information, although the charge will also be subject to reasonableness.

As a matter of policy, this strikes a fair balance because a managing agent managing a large portfolio could be faced with many hundreds of such enquiries for which they would otherwise not be able to recover their costs or those costs would be passed onto the building as a whole making it more expensive for everyone.

I am not confusing the two, but I did say check with LEASE as I wasn't 100% certain on that. I am quite shocked tho - I can see they might be allowed to charge for letting your view or copy invoices as really we should be able to trust the accountants. But to be charged for a basic breakdown of what we are legally obliged to pay ... In many cases this discussion is academic as it seems quite a few managing agents just ignore requests for further information!!

Janyliz

Hi
It's a bit tenuous this one but just wondered whether anyone could advise. I've just received a letter from the management company (also own the leasehold) demanding £50 per annum granting us a licence to have a satellite dish on our property.
Now, the property is a listed building and in a conservation area so satellite dishes are actually prohibited. I've been a bit cheeky and had one installed and thought I'd deal with it if it became an issue with English heritage.

I will probably have sky remove it and go freeview but can the management company do this ?

Fire_Fox

Janyliz wrote: »

Hi
It's a bit tenuous this one but just wondered whether anyone could advise. I've just received a letter from the management company (also own the leasehold) demanding £50 per annum granting us a licence to have a satellite dish on our property.
Now, the property is a listed building and in a conservation area so satellite dishes are actually prohibited. I've been a bit cheeky and had one installed and thought I'd deal with it if it became an issue with English heritage.

I will probably have sky remove it and go freeview but can the management company do this ?

The management company can do whatever they want as you have broken the law and knowingly damaged a listed building.

Janyliz

I think knowingly damaged is a bit strong! It's only a sky dish!
Actually, having looked into this further with the local conservation officer. The Management company must apply to them for permission to mount satellite dishes on a listed building. If it is granted then they can do whatever they want in terms of levying charges on us.

Fire_Fox

That was the attitude of the estate agents who nailed 'for sale' boards to our building: an area of stonework has now come away completely. It's not for you to decide whether it's only a Sky dish or not; if you can't respect a listed buildings and the stringent conditions that surround alterations or additions you should by a new build. If you'd sought the appropriate permission the dish could have been affixed in such a way that it would have caused least damage.

Mary_Hartnell

If you do something yourself in a freehold property, you have only yourself (and your partner?) to agree.
If something requires local authority permission there are at least two sources of conflict.
(They say NO or YES BUT).
Once a ground landlord gets involved to tell YOU what needs doing there are seven decisions to be made only two of which can be unanimous.

No wonder it all get very slow and expensive.
Per4haps best to own an apartment where the owners own the management company BUT the same chances of conflict exist.

Do we need all this government?