Management Company Charging Me for Nothing!

dmg24

I live in a leasehold property on a new development. The development is not due to be completed for another year, and until this time the developers (a national builder) are maintaining any communal areas (not that there really are any!). The only thing that the management company current provide is the buildings insurance (£110 per year).

I moved in six months ago, and paid the first six months service charge (approx £300) without any questions, because I just wanted to get moved in. I have just got my bill for the next six months, another £300, and don't feel I should be paying for something I am not getting! I am obviously willing to pay for my buildings insurance, but that could come out of the £300 I have already paid.

I have contacted the management company and all they can say is that I am obliged to pay the service charge under the terms of my lease (however my interpretation of this is that I am obliged to pay a fair service charge). They also say that the money will be held on account until the development is handed over to them, but surely this means that my money will also be used for the benefit of those that move in a year from now?

They have said that to take it any further I need to put my concerns in writing, which I shall do.

All I really want to ask at this point, is for those that have also been in new builds pre handover, have you had to pay so far in advance? They are going to have had £900 from me alone by the time they take over the management, with their only outgoings £165 for the buildings insurance!

Also, the management company provide services for leaseholders, and also for freeholders who pay a contribution to the so called communal areas (the leaseholders also pay towards this charge separately from their main charge). The management company charge a £90 management fee for the leaseholders, and also a £90 fee on the communal charge. This means that leaseholders pay £180 in management fees alone - does this seem right?!

Hope that all makes sense! Any advice/ experiences would be very much appreciated.

Emmzi

Seems high to me. Mind you, I'm in Scotland, own under a different system and so pay my own buildings insurance. That's about £25 buildings and contentsd (would be £15 buildings only)

I'm £8.80 a month for communal areas etc all in. When I first moved in they asked me for £50 on account until communal areas were handed over (I was in first road completed in estate) and I didn't hear any more from them for a year. I also get a regular breakdown on gardening quotes etc.

david29dpo

you can pay as normal now, but it will be deducted in the following years. i know, i have done it! hope this helps.

samspam

Are you in a house or an apartment?


If you are in an apartment then you will be paying for more than just buildings insurance:

Door entry maintenance
lift maintenance (if you have one)
Communal Cleaning
Communal lighting (bulbs, electricity)
Window Cleaning
Contribution to sinking fund
Gardening / Landscaping
Car park lighting, cleaning

Also (the pisstaking part)

Management company fees
Accountancy fees

Wasn't there a breakdown of charges in your bill for £300?

dmg24

Thanks for your responses (and for reading what turned into a v long post!) ...

david29dpo, and Emmzi: Could I ask you to pm me the name of your management companies please? Could I also ask what you pay for a management charge? Do you have to pay two lots, one for the leasehold part and one for the estate charge?

samspam: Thanks for your reply, but I wasn't querying the amount, just the fact that I am paying and getting nothing because the management company aren't currently managing the site!

Any other comments on the following would be gratefully received:

Also, the management company provide services for leaseholders, and also for freeholders who pay a contribution to the so called communal areas (the leaseholders also pay towards this charge separately from their main charge). The management company charge a £90 management fee for the leaseholders, and also a £90 fee on the communal charge. This means that leaseholders pay £180 in management fees alone - does this seem right?!

Thanks again!

Emmzi

I can't remember the company - pay by dd. It's purelay an estates charge for gardening and insurance liability for communal areas, and it's £8.75 or so a month. They send us the 3 estimates they get annually for each service, and let us know which one they have picked (the lowest). Also periodically send letters about keep your children in after dark, clean up after your dog etc (no extra fee!!).

dmg24

Do they charge you extra for paying by direct debit? The closest option we have is standing order, and they charge £11 per year for the facility (even though it is surely to their benefit?!).

Also, if you do not use this but choose to pay by credit card you're charged a 2% administration charge!

Am arranging for the customer services director from my builders to come over to site so that he can comment on the overall service charge, and the endless extras that the management company seem to find!

david29dpo

i simply walked in to the agent and told them! the charges are unfair and therefore i will not pay them. i added if this sort of thing happens again myself and the other residents with change agents. i worked. 5 years later, no further problems!

dmg24

Problem is the management company are based over 100 miles away! They supposedly come out to site once a month, but refuse to tell me when this will be!

jennifernil

I must admit I am more than a little confused by all the details you have given, and also up here in Scotland we don't have leasehold properties. However I do have a few observations, based on our experience, which may/may not help!

1. The money you are paying will not be disappearing into some huge pot. You should get a statement each year at least, detailing the charges you have to pay and the amount you have paid. If your account is in surplus it will be carried forward to the following year. If you build up a large surplus you might be able to negotiate the return of the money, or a "payment holiday".

We, well actually our daughter, have a flat in a block of 14, so a fair bit of the monthly payments go on communal charges such as lighting, cleaning, gardening etc., and the rest comes off any maintenance or repairs that are needed to the block.

2. £600 per year sounds quite high, but it depends on what it will cover.
We pay £40 per month plus our share of the buildings insurance. If there are any costly items, like decorating the common areas, we may have to pay extra. The block is managed by a company the residents employ, known up here as "the Factor". They charge £100 per year per flat for their services ,but this comes out of the £40 per month we pay.

3. We pay by standing order, we do not get charged anything extra for this.