Managing Company not collecting money for sinking fund

CarineG

I live in a block of 12 flats, all the flats have long leases. We need major works done to our building and these works were first investigated by a building surveyor in 2007. The building requires some rendering works as well as roofing, joinery etc. Some of the works will require scaffolding.
Since the report came out in 2007, the managing company have only served notice to notify us of the works planned, nothing has happened apart from letters from them (in 4 years).
The last correspondence from them was to plan some of the works and let us know of the 30 day observation period.
I sent them a two page letter of observations two months ago which they have not responded to and have chase this up with no result so far.

The lease stipulates that a sinking fund needs to be set up for the major works, however there is no sinking fund set up as yet and the managing company has not responded to my letters regarding this matter (asking for confirmation that it has been set up). They are currently not collecting money for the works which worries me.

The building is falling in a state of disrepair and everyone's asset is losing value as well as the fact that our building looks well, it looks like it's falling to pieces. The managing company has not been responding to any of my letters or emails this year.

Last week I requested a copy of their complaints procedure, I will also be sending a photo survey of the works that needs to be done, to show how desperate the situation is becoming.

I have taken advice from LEASE and they recommend I lodge a claim with the County Court to order of specific performance to force the landlord to meet his repairing obligations or to the LVT and get a new Manager appointed.

Has anyone been through this process and have any tips? All I want is for money to be put aside for these works to be done soon.
I have a feeling that the other leaseholders do not want to chip in more than they already do and this could be slowing down the process even more.

propertyman

CarineG wrote: »

I live in a block of 12 flats, all the flats have long leases. We need major works done to our building and these works were first investigated by a building surveyor in 2007.

My advice is that you will need to list out the clauses in the lease which relate to what should be done and how the service charge, of which the sinking fund forms part, should have included funding, and when.

The disadvantage of the court order is that they will refer it to the LVT anyway, and you many have to press to keep the initiative. The LVT appointment of a manager has the advantage that in most cases the manger under the order takes the initiative.

I would locate a local chartered surveyor who deals with this via RICS.org and they can help with the application.

There are other rights including the right to manage your selves and the right to acquire the freehold, however if your neighbours are reluctant to pay, then you will face the same issues of no progress through non payment.

G_M

I have limited experience of leases, and can't add much to propertyman above, but I'd recommend joint action. Getting together with other concerned leaseholders is going to be easier (and cheaper/less strssful!) than trying to take action alone.

propertyman

G_M wrote: »

I have limited experience of leases, and can't add much to propertyman above, but I'd recommend joint action. Getting together with other concerned leaseholders is going to be easier (and cheaper/less strssful!) than trying to take action alone.

I would agree; in this case and in fairness most, you have to judge the attitude of others. Many RTM groups start on the premise of rebelling against expenditure, often even if it is reasonable and necessary.

The process could be hijacked.

CarineG

thanks all for your recommendations

Propertyman - my original letter regarding the sinking fund named the particular clauses of the lease in relation to this as well as current legislation. I will list them separately and will re-issue them in my next letter.
I am also going to start a register of all the letters I have sent to the Managing Agent, I'm struggling to keep track!

Joint action is going to be tricky since I don't know many of the leaseholders but I think you are all right, this is something I need to look into.

CarineG

G_M - some of the flats are let. How can I get find out the address of the leaseholders, by speaking to the tenants direct?

CarineG

Update:
I have officially complained to the company in question, copied one of their directors and logged a complaint with RICS which are investigating.
The management company have today responded that they are looking into the matter.

:j

propertyman

CarineG wrote: »

G_M - some of the flats are let. How can I get find out the address of the leaseholders, by speaking to the tenants direct?

Yes though they may be reticent to give that info. I would suggest a letter which you can show to the tenant that the letter is not a "scam" but a serious enquiry and not one that their landlord would be upset to have passed on to them.

Put a stamp on it and ask if they would address it and send it on.

CarineG

So no sinking fund and the managing company has just issued us with an invoice for £9600 per flat!!!!

:eek:

Looks like the LVT is our only option now...

patman99

The ManCo sound like a right bunch of cowboys. They aren't based in Southend by any chance ?.

You can find-out the LL's names via the land registry website. It will cost you £4 per flat though.

Invite the other owners to an informal meeting to discuss what has happened so far and whether or not the others would be in agreement in respect of setting up a self-management system with the residents appointing their own ManCo.

We are lucky where I live as we self-manage and have a really good ManCo.

CarineG

Hi there Patman,

No the company is not located in Southend, they are in north London but I am sure this kind of agency is all over the country.

The problem with setting up our own management company is that I know that several leaseholders are in arrears of service charge and have been for years so we would inherit this situation and would not be able to get them to pay... it would be difficult anyway...

The good thing about all this is that it's getting the leaseholders to get to know one another.

The works are currently going to one of the companies the ManCo has suggested (since they did not get any suggestions) and the supervising surveyor is one of their own companies too. Oh and did I say that they are offering a 12 month instalment plan by their credit company as well?
Guess who's the winner?

:mad: