Shared ownership - service charge increase

urban_chaos

Hi everyone

Just wanted to share and see if anyone had any ideas...

I bought a shared ownership flat late 2010 about 20 mins walk from the hospital I work at in Central London. Newly built, only 1 bedroom but my first own home and I was very happy.

I received a letter yesterday from the Housing Association stating that my service charge is going up by £100 per month and I owe them another £400 for the "underestimated" service charge since I've been living here.

I spoke to the Leasehold Advisory Service this morning and apparently I have no choice but to pay it.

I'd be grateful if anyone could suggest anything.

Thanks.

john_white

Pay it. Or fight it, get stressed and then pay it.

They will have to provide evidence of the spend but they will and you'll have to pay it. Why are you ignoring the advice given by LAS?

dopester

urban_chaos wrote: »

I bought a shared ownership flat late 2010 about 20 mins walk from the hospital I work at in Central London.

There are changes planned for service charges in London.

I've not fully understood the document myself. A lot to absorb and make sense of, and I decided not to bother as I won't ever be paying service charges in Shared Ownership schemes or other types of housing where it's applicable.

You might get something from it however, if you study it, and it seems like you have good reason to do so.

PDF paper, released 20th July 2011 by the Greater London Authority:

London Authority
Proposed review of service charges in London
http://www.london.gov.uk/sites/default/files/Service%20charges%20scoping%20paper.pdf

Norman_Castle

This may help http://england.shelter.org.uk/get_advice/renting_and_leasehold/leaseholders_rights/service_charges.
Check the details of the charges, from my experience housing associations make mistakes.

urban_chaos

Thanks to Norman Castle & dopester for the helpful replies, I'll read through them.

@ john_white - just to be clear I'm not ignoring the advice of the LAS, if I had the money I'd pay it but unfortunately I can't afford the rise in the service charge + the underestimated cost so it looks as though I'll be losing my flat.

Richard_Webster

OP should have be warned when he bought that the service charges weren't fixed and could fluctuate wildly.

He should have factored that in to this calculations about affordability.

But did his solicitors explain that?

££sc££

If you're service charge is rising by £100 a month there are probably a lot of shared owners that will struggle to afford this.

Whilst the HA will pass on the costs incurred, is there any scope for getting them to reduce the services received? Bit of along shot but if your cleaning/gardening/window cleaning etc is weekly, could it be put to fortnightly, etc or similar, by reducing frequency costs should reduce. Are there a couple of small grass patches that if they were flower beds would require a lot less servicing? Just a couple of ideas. Some things they won't be able to change e.g. buildings insurance, cost of communal electric etc

I would hope the HA would be happy to listen to you and other residents ideas if it really is affecting your ability to afford.

Norman_Castle

This may also help http://www.tenantservicesauthority.org/server/show/ConWebDoc.19783
Speak to your neighbours about the increase.