Trapped in my flat by huge service charges...!!

2sides2everystory

And they end up as what? 20% or thereabouts? 18 point something in a "capped year", 25% when we are least expecting it? Never 10% eh? Those times are long gone. Can't get rich quick on 10% any more, eh?

It's all totally incremental inertial insidious greed and unless challenged by a few good (wo)men and true who sometimes spend inordinate amounts of time holding these people properly to account, it would be even worse than it is.

Sa-ra-ra-ra

Um, no. A set fee. I.e. every unit managed by the company pays approximately the same amount. Not as a percentage of the service charge budget, so it doesn't matter if the service charges for the block are £1,000 or £100,000 - they'll still all pay around the same amount per unit.

2sides2everystory

So property managers never get tempted to compare it to the total service charge budget?

Don't you think a leaseholder might be interested in what approximate percentage of the total outlay goes in fees to "managers" ?

Do you not think it might be a useful comparator?

Sa-ra-ra-ra

Of course, and if they look at the budget, and divide the managment fees by the total amount of the budget and multiply by 100, they can do so. But the majority of reputable block managment companies won't provide this information as a percentage because it has no bearing on the service charge budget or the fees charged.

I agree that there are some very disreputable companies operating, and I agree that leaseholders are not given the right information or pointed in the right direction to find out what they need when dealing with RMCs or managing agents. But not all are like that.

... and I'm not sure this is the right place for this discussion, it has gone a little OT.

GDB2222

spedders wrote: »

There are 8 flats in the block and 5 blocks on the scheme... they said that the work will cost £12,000 per tenant..!!
they have also been taken to court by another tenant over this but they just dragged the case on till he could'nt afford to carry on.... then tried to claim the court costs back via the tenants association.
i just want out... i'll gladly give it away to get out of here..!!

If nobody will buy it and you can't give it away because of the liabilities attached, can you set up a limited company, transfer your interest to that, then liquidate the company? Not too clear about SO properties.

Not sure if you really meant it when you said that you would give it away, anyway.

2sides2everystory

Sara, if the thread has 'gone a little OT' it is because the thread was started by someone who has had their life turned upside down by "property managers" - a housing association in this case - or in many cases "the council" as was, or some more recent other local authority sponsored/subsidised beast introduced as part of a "low-cost housing scheme" originally. Laughable isn't it, that low-cost becomes total rip off? Actually it is sick.

Then some property managers entered the fray and counselled that it was all hard cheese / c'est la vie

Then I told it how it really is in this totally unregulated section of our economy, and have indicated that I would dearly love for someone in power to intervene and finally clean up the whole stinking mess which is the leasehold property arena which so many people (especially first time buyers) are led into daily - many like lambs to the slaughter.

And then I wouldn't be surprised if people reading it have been a bit shocked to hear the other side put so bluntly, and don't really know what to say.

This leasehold service charges stuff doesn't get aired anywhere near enough on MSE. It really needs it's own board to actually tease out the sorry stories telling of what thousands of modest households are unfairly shouldering as a massive cost burden, having been counselled that's just the way it is. Well it shouldn't be. It is wrong and it should be righted and a sub-board with it's own Praise and Vent thread would do a whole bunch of moneysavers a real service and buck a few ideas up.

spedders

UPDATE....!!!

Still stuck here guys .... thought i had a buyer but after 9 weeks she changed her mind stating that the service charge was more than she realised ....gutted.....and they just keep hitting me with more bills... just had another one for court costs from some legal case that the tenants association took out and lost... total court cost of £250,000 split between everyone in the flats so thats another £2500 for me to pay.... rang them up and argued it was nothing to do with me but they said if i read the lease then they are entitled to bill everyone living in the buildings.... they told me to seek legal advice... sure.. like i've got any spare money and want more legal fees....
Can i walk away from this and just disappear ... i wish i could just leave but I have a job so i'm easily traceable...!
should/can i go bankrupt..?
life is not good here..!
thanks anyway for the replies guys..!
even had a PM from Domonic Littlewood from a comsumer TV show looking into bad landlords but they never got back in touch..!

Ulfar

Okay there is potentially a nuclear option, but it will leave you stuffed financially wise and if you need to rent could be a problem.

In the last year or so a judge made the determination that when a leaseholder got behind on their rent and the housing association took action to gain possession, it voided the whole lease, this left the leaseholder with the mortgage debt and no flat.

See section 4 :

http://www.lease-advice.org/publications/documents/document.asp?item=67

You would probably need to declare yourself bankrupt following this which would then clear your debts.

I would not suggest this action lightly, the implications are far reaching.

urban_chaos

Hi spedders

I joined this board because of a similar situation so I can sort of understand what you're going through

I didn't want to read & run and I'm not sure if it will help but here's my story:

I bought a shared-ownership flat in Central London, late 2010 and after a year, the management company (through the HA) put up my service charge by £100 per month plus they wanted another £400 for the "underestimated" service charge for the year that I'd been living here.

There are around 100 Shared-Ownership flats in this development plus some privately owned ones.

A lot of us made formal complaints to the HA and some of us wrote to our local MP who was willing to get involved.

After months of stress _pale_ and lots of writing, thankfully the HA decided to fund the "underestimated" service charge for all shared-owners and the management company reduced the increased service charge to £60 rather than £100, however it's gone up by a further £40 this year and will obviously continue to rise.

At the moment I can afford the rising service charges but really I'm just trying to hang on until I can sell it.

I wish you all the best and I hope that you can find some sort of resolution.

urban

Spartacus_Mills

urban_chaos wrote: »

Hi spedders

I joined this board because of a similar situation so I can sort of understand what you're going through

I didn't want to read & run and I'm not sure if it will help but here's my story:

I bought a shared-ownership flat in Central London, late 2010 and after a year, the management company (through the HA) put up my service charge by £100 per month plus they wanted another £400 for the "underestimated" service charge for the year that I'd been living here.

There are around 100 Shared-Ownership flats in this development plus some privately owned ones.

A lot of us made formal complaints to the HA and some of us wrote to our local MP who was willing to get involved.

After months of stress _pale_ and lots of writing, thankfully the HA decided to fund the "underestimated" service charge for all shared-owners and the management company reduced the increased service charge to £60 rather than £100, however it's gone up by a further £40 this year and will obviously continue to rise.

At the moment I can afford the rising service charges but really I'm just trying to hang on until I can sell it.

I wish you all the best and I hope that you can find some sort of resolution.

urban

You are being bilked. Most people in flats who pay "service charges" are being bilked by the managing agents.

Just Google and you will find thousands of horror stories.

If people think it is going to stop, forget it. They, especially new build, start them off low and then ramp, ramp, ramp.

Do not expect any support from government or any of the institutions. No one gives a toss about you apart from the odd local MP wanting to look good.