Management Pack qouted at £378! Outrageous or reasonable fee??

Tim79

i'm with you in this one Mike - i have heard back from the Managing Agents basically telling me to pay up or i won't get the Pack. They know i need it and can't move without it, so they're going to hold me to ransom over it. I suspect there is only one winner.

They have already explained to me though that they provide a standard list of answers to a standard list of questions....it is hardly rocket science, but simply repetition on a grand scale.

Many other leaseholders have sold these new build flats (5 years old) in the last 12 months so it is not as if they have to trawl through dusty documents to find the right answers. They have a model template ready and waiting to go to the next mug (me) who tehy bend over and force to pay £378 for the pleasure.

propertyman

hanwellmike wrote: »

I was assuming that this ''standard pack'' is put together to provide basic information relevant to the property. A package of information that would be sent to Purchaser's solicitor to answer most basic questions. Not in response to specific questions from the purchaser. As such a standard pack would not take much investigation and it should be a lot cheaper.

If the package was assembled by the Management Agent in response to individual questions from the Purchaser's solicitor specific to the flat being sold then yes I agree the cost could be a lot more.

Then your assumption would be wrong; as I said earlier questions such as disputes alterations and consents and major works are standard....

propertyman

Tim79 wrote: »

i'm with you in this one Mike - i have heard back from the Managing Agents basically telling me to pay up or i won't get the Pack. They know i need it and can't move without it, so they're going to hold me to ransom over it. I suspect there is only one winner.

They have already explained to me though that they provide a standard list of answers to a standard list of questions....it is hardly rocket science, but simply repetition on a grand scale.

Many other leaseholders have sold these new build flats (5 years old) in the last 12 months so it is not as if they have to trawl through dusty documents to find the right answers. They have a model template ready and waiting to go to the next mug (me) who tehy bend over and force to pay £378 for the pleasure.

To an extent some of it is repetition as much of the answers apply across the board eg name of freeholder whom to serve notices on etc.

If the agent is giving a standard answer in relation to those questions that need individual attention as posted then they risk their PI policy by doing so and as part of your challenge of the fee, explain that they have not answered the question as they should. I gave examples earlier.

clairecymru

We paid £298 for our pack

timmyt

as a tenant you can make (or threaten them that you will make) an application to the LVT - Google it - on the basis that their charges unreasonable and are too high for non-professional clerical matters.

(I recently saw a charge for £450, getting as high or more than some lawyers who do all the legal work for many weeks.)

that is the solution. good luck

poorlittlefish

propertyman wrote: »

Just don't assume it is 10 minute run through the photocopier add invoice and stamp.

I agree. I can't comment on private management companies' seller packs, but I used to deal with these for council leasehold properties.

To look up all the information requested, do all the necessary photocopying, check this and that and type everything up would often be a whole morning's work.

Often solicitors would ask questions that we would have to approach other departments about and in terms of possible future works, we would instruct a surveyor to visit the block to compare the condition of the block against what our list of programmed works implied would need doing. Such visits quite regularly uncovered breaches of lease terms in respect of unauthorised alterations and even loft conversions when the leaseholder did not own the loft space.

Some solicitors would send a fairly standard list of questions that fit on one piece of paper. Others sent lists that were several pages long and to type a response to each and every question would take ages. No matter how many questions, only a flat fee was charged. Our cost, as propertyman mentioned, had to cover officer time, paper, ink, postage and overheads.

£378 does sound pretty high, but unlike councils, I guess that private/commercial management companies are entitled to incorporate a "reasonable" profit margin in their charges. It is for the LVT to determine reasonableness.

Markie11

I've just paid £60 for the privledge, which by the sound of it is very good.

Though that be said, what is currently holding up the exchange of contracts is the that accounts for '08,'09,'10 are not finalised yet. So the buyer's solictors want a huge retention value.

I can't believe that they haven't finalised these accounts yet. I've been promised that the '08, '09 accounts will be done by xmas and the '10 and '11 ones by March '12. To be honest I don't hold much faith in their word to do this.

propertyman

Markie11 wrote: »

I've just paid £60 for the privledge, which by the sound of it is very good.

Though that be said, what is currently holding up the exchange of contracts is the that accounts for '08,'09,'10 are not finalised yet. So the buyer's solictors want a huge retention value.

I can't believe that they haven't finalised these accounts yet. I've been promised that the '08, '09 accounts will be done by xmas and the '10 and '11 ones by March '12. To be honest I don't hold much faith in their word to do this.

Then have your solicitor ask the agent if they have served a notice under section 20B in place of the accounts or other notification, as this limits cost in excess of any interim charges* which are 18 months old or older.
http://blog.brethertons.co.uk/2011/09/20/have-you-got-section-20b-sussed/
*Many leases ask for "what they think they will spend" in the coming year- your solicitor should advise you, and not accept the bog standard answers or cop out with a blanket undertaking or retention.

The reason they charged £60 is perhaps an indicator you pays for what you get, and in this case not a lot?