Maintenance charges- unacceptable increases

ktel1

I own a flat that is part of a freehold of 24 properties. We employ managing agents to look after the property. Part of our annual maintenance fees include a general sinking fund and a roofing fund. I have been paying into these funds since 1995 when I bought the property. Last year a part of the money from this fund was used toward the refurbishment of our balconies (of which I do not have) and patios (which I do have!)

Following the last AGM (attended by 6 or so residents, not including myself), it was proposed that the annual maintenance be increased by almost £200.00 per year in order to boost the roofing fund again quickly.

All the residents that attended the AGM and agreed to such proposal appear to be retired and probably don't have a mortgage but I simply cannot afford such huge increases (22% increase over last year) without putting my continued ownership of this property at risk. Certainly I would have no spare cash for emergency contingencies.

I appreciate that the roof will need replacement at some stage but I simply cannot afford to pay this out per year and instead would prefer to bank this in a savings account of my own and pay out at the time required (or take out a loan to pay). This would allow me to maintain a pot of cash for emergency purposes.

I have written to the agents to propose such but they have not replied. I have stated that I would be happy to pay an annual increase of say 7% in line with annual inflation but could not afford to pay the full amount that was agreed at the AGM.

So my question is, can I refuse to pay such a large increase or reasonably withhold payment against the additional amount proposed?
Is there a legal body/ombudsman/arbitrary body who control what increases are reasonable to impose?
What are my options here?
Would appreciate any help? Many thanks

sooz

What does your lease say?

Does the proposed increase meet the terms of your lease?

However if you funds are so tight that a sensible increase ( to facilitate the roof fund) of under £200 per year is a serious issue, I suggest you attend the next agm to have your say.

Edit - are you a leaseholder only? Or do you have a share of freehold with others? Or has your block exercised right to manage? I'm not entirely clear from your post.

dodger1

I understand that a 22% increase is indeed a large percentage but it's less than £4 per week. Surely £4 per week wont put your continued ownership of the property at risk as you put it.

ognum

I feel your pain the exact same increase happened in a flat I own.

moral of this story for me and you is next time attend the meeting, for me it means a 120 mile round trip but I will still go or send a representative!

Euphoria1z

do you currently owe them any money? if not, i would personally make a standing order and pay them a figure that im comfortable with, on a monthly basis, because at the end of the day, they havent repaired the roof that you have been billed for. And when the time comes that the roof does need repairing, you could be in credit or debit, if in debit, then you will need to make up the difference.

this is only my opinion and this is what i would do first. I honestly dont think they can legally ask you to pay up front for something that hasnt taken place yet, but i could be wrong.

As others have said the figure is quite small ... but then again, all the little expenses can and do add up when money is tight.

phill99

The cost is not even 2 cappuchinos a week.

I guess you were quite happy to accept the improvements to your patio, that effectively didn't cost you anything.

And believe me, you would be exceedingly miffed if you don't pay enough in to the roof sinking fund and then get landed with a bill for £5k or £!0k, which is the other option.

£4/week is nothing to cover the cost of a roof. It also shows that your management company are doing a pretty job and getting ahead rather than letting maintenance problems mount up and then everyone is up in arms that the roof is leaking and nothing is being done about it.

Oneday77

Did everyone benefit equally with the repairs to the balconies an patios? I suspect they did, if not did the bigger beneficiaries pay extra?
Ask for a balance of the emergency fund and maybe request a quote is gained for he roof replacement. With that info you can gauge if an extra increase is sensible if a bitter pill to swallow. If he roof needs urgent repair in future you wouldn't want repairs delayed as the pot was empty. I feel your pain but anything you gain in banking the cash could cost more in unrepaired property damage.

Emmzi

if the AGM voted, you had a chance to be there, you had a chance to have your say, then you aren't going to reverse the decision because you did not attend/ did not speak up.

I am guessing you have a patio as you are on the ground floor and the roof is further away If you were a top floor flat you'd find £20 a month!

This is not an unreasonable ask; it is in fact prudent to sread the cost over a few years. I'd pay up.

propertyman

After all the conciliatory posts, I offer some advice.

Balconies; Check your lease to see if balcony repairs are a service charge expense or if they are an individual cost. This sort of mistake is common. Also check if they are a common expense, but apportioned only to the balconied flat owners.

Reserves: if the reserves were specifically collected for roof works, and/or the lease sets out what reserves are, then the monies cannot be sued for work to the balconies.

? Does the lease allow for a reserve fund to be collected......

AGM; While this can make decisions on what to do, the company is bound by its leases to what it can spend its money on, and who pays out for it, as above. It cannot agree to do what the majority wants if its leases don't allow it, or most importantly recover those costs from you!

Reasonable: Sadly the increases don't have to be reasonable in comparison to indexes such as inflation. The determinant is what is needed to be done, and then that the cost and method of that is fair and reasonable.

Independant Review: The Leasehold Valuation Tribunal can help. While formal it works to accommodate in the applicant in person.

http://www.lease-advice.org/publications/documents/document.asp?item=18

BitterAndTwisted

There are only 24 properties. If the majority cared enough the leaseholders could vote for the right to manage their own affairs. The difficulty with that option is that you need people who are willing to take on the task and are competent to do it. My sister lives on such a development but her is a bit larger than yours. The people there who devote their time and effort to manage it took on a thankless task and those who decline to vote about any of the proposed repairs and ground-works expenses are the first to complain and be obstructive about it. There was a furore last year when it was proposed to do some lopping of a huge great tree on the grounds. What did the troublemakers and moaners do? Succeeded in getting a TPO. A right PITA some people are.

propertyman

BitterAndTwisted wrote: »

There are only 24 properties. If the majority cared enough the leaseholders could vote for the right to manage their own affairs.

But B & T they already do, there is a resident's management company...

In this case it might be because they manage themselves they took the reckless decision to use a roof fund for a balcony, and charge the wrong people for it.

A TPO doesn't prevent lopping a tree, if it is good for the tree or a danger to the property and people, the "Tree Fella" will agree.