Freehold Maintenance Costs

taitken25

Help!!

I own one of three flats but the freehold has just been bought by a 3rd party.
Firstly, none of the owners paid any maintenance costs over the last 6/7 years and did it 'as and when'.
Now, the new freeholder has backdated the last 6 years worth of costs, including ground rent, and we are getting hit with 'emergency bills' left right and centre. The most recent for drainage works totalling over £6000 bewteen the three owners.....one of which is abroad and shows little interest!

The freeholder uses a management company who are useless, but they did mention that maintenance bills would be an annual bill.
Where do i stand....should i get more quotes for this work?

Any advice appreciated!

:beer:

propertyman

The thing you have to understand is that the freeholder has control over the building other than the individual flats.

having taken over they

1: Can backdate ground rent for 6 years, as long as it is billed correctly.

2: Service Charge Costs cannot be backdated 6 years unless they have been notified and or demanded to you by the former freeholder, over the course of the last 6 years, and within 18 months of having been incurred.

3: Any Bills can only be raised as the lease allows. The FH may have an emergency but unless the lease allows for one off bills they are not due. The FH has to accept they have the responsibility to repair insure etc but how and when they can recover the costs is set out in the lease, not need.

4: Annual Bills might be how the lease sets it out, eg an annual estimate with the actual costs calculated after the year end and a top up or refund made.

5: There a re various hurdles the bills have to meet or you can withhold the charge. This includes being as set out in the lease, information under section 47 & 8 of the Landlord And Tenant Act 1987 and A Summary of Rights.

6: Any cost must be "fair and reasonable" and as set out in 5 the summary of rights explains your right to appeal to the LVT to determine that.

7; Major Works cost - £6k. Even if it is an emergency any such costs are subject to consultation under Section 20 of the Landlord and tenant Act 1985 if the cost to any one flat is more than £250. If they fail to consult then no matter the cost you only pay £250.

Be thankful that they are doing something but if it is done poorly you must advise them keep records and challenge the cost.

You will find detail on the above here
http://www.lease-advice.org/publications/documents/document.asp?item=14
http://www.lease-advice.org/publications/documents/document.asp?item=19

taitken25

Thank you for your advice,

I understand that at least something is being done. I will go through the fine print tonight in the lease.....but is the FH able to demand the cost before the work starts as this is what they are stating? If not high interest will be charged.

propertyman

taitken25 wrote: »

Thank you for your advice,

I understand that at least something is being done. I will go through the fine print tonight in the lease.....but is the FH able to demand the cost before the work starts as this is what they are stating? If not high interest will be charged.

Most welcome


As I have said for what and when charges can be made depends on what the lease says.

If the work will cost more any flat more than £250 he has to consult beforehand, as the links show, irrespective of what the lease says.

Interest is only due if the lease allows it or a court grants it.