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Shared building repair expenses in flats

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I live in a block of 6 flats. The building is over 100 years old and is in a bit of a state. I own my flat but the other five are rented out. A new landlord has appeared and is getting work done internally as well as externally (shared). She has had two quotes for work to be done. One of the quotes is a joke saying no scaffold is required and they'll do the work off hired ladders. On a three storey building.

This landlord has sent a letter with the following paragraph
"Should all owners within the building agree that the work should progress I will arrange to schedule work with whichever contractor you agree to undertake the repair, agree payment terms and collect contributions from all owners within the building in advance. Following completion of these works each resident will be supplied with a copy of the works receipt."

Do I have to pay for work in advance? How do I know the work will be carried out satisfactorily. My brothers are Directors in a long established roofing company and one of the had a quick look at the property with a scaffolding sub-contractor. They've said there's no way the could carry out the work for the prices quoted. One was for £3,600. The other had
"Price for that between 800 - 900"
Doesn't exactly inspire confidence.

The £3,600 includes £600 VAT. VAT number has been checked out (at http://ec.europa.eu/taxation_customs/vies/vieshome.do) and the company is a few months off 4 year old. The work includes renewing the guttering. Currently they are cast iron Ogee gutter which my brother explains to me is expensive to replace. The specifications don't state what the gutter is being replaced with.

The other "estimate" is just typed on a sheet of paper - a Polish name and an email address. I just want to know where I stand regarding paying for this work. I want to pay for the work on issue of a valid invoice. I will then issue a cheque made out in that name. I want this payment to make up the turnover on someone's tax return.

Any advice on what I should do?
AT 1st SEPTEMBER 2009
CASH......£ 321.41...
BANK.....£ 625.75
C-CARD...£ 5101.85...ISA......£ 120.00
Loan from parents for car ~~ £ 5500.00

AT 31st OCTOBER 2009
CASH......£
. 50.23...BANK.....£ 723.12
C-CARD...£ 3818.67...ISA......£. 80.00
Loan from parents for car ~~ £ 5380.00

Comments

  • sgun
    sgun Posts: 725 Forumite
    Part of the Furniture 500 Posts Name Dropper
    edited 10 July 2012 at 6:56PM
    England, NI, Wales or Scotland? Makes a big difference if in Scotland.

    Just seen Largs so Scotland! There is quite a process to be followed in Scotland including setting up a bank account that anyone can join, banking mandates (not necessary but does protect you all somewhat), working to the correct timescales AND a majority agreement to have the work done. When did the vote take place? Have you had a meeting or has it just been fed back to the lady ad hoc? From her letter it does seem that she doesn't actually know the legal requirements for getting scheme work done in Scotland. Google "who rules the roof" if you haven't already read it, its a good place to start.

    You need proper quotes with a breakdown for EXACTLY what they are charging for. For example on some roof repairs in Edinburgh one company was going to charge £750 just for cleaning gutters with a cherrypicker - ridiculous! Needless to say we did not go with them. Do you have a breakdown? I can compare it with figures we were getting quoted in Edinburgh (for a variety of things, gutters, repointing, flashings, flat roof etc etc)

    Yes, you do need to pay in advance but by setting up a community bank account with more than one stakeholder will protect you. The problem you have is that many contractors will not do the work unless they have the money first, its a matter of trust as if one person pulls out its the contractors that lose money. You might be lucky to find someone who will do the work on the evidence of the bank account balance but you would still need to put the money into the account first.

    I'm just about at the end of this long and boring roof repair process so pm me if you need to know anything (just in case I don't get back on this thread).
  • BitterAndTwisted
    BitterAndTwisted Posts: 22,492 Forumite
    10,000 Posts Combo Breaker
    "A new landlord"? Who is this new landlord and who precisely is supposed to managing the building and arranging for maintenance and repairs to be done?

    I dunno how it works in Scottishland but in England for works to be undertaken and contractors appointed there really should be a fund set aside for major works out of the service-charges, and all of the six leaseholders should have a say in what works get done, by whom and for how much
  • sgun
    sgun Posts: 725 Forumite
    Part of the Furniture 500 Posts Name Dropper
    No, in Scotland it is quite common for there not to be a sinking fund or building factor. Its then up to the owners to sort it out themselves. It is far far better though to sort it out that to have a council statutory repair notice issued as this can triple the cost. Also anything that it deemed "scheme" i.e shared and essential (roof, walls etc) MUST be fixed jointly by law. You can be chased in Sherrifs court if you refuse to pay for something that needs to be done. This doesn't include cosmetic, just essential repairs.
  • theesel1994
    theesel1994 Posts: 210 Forumite
    I've been here 23 years and most of the work has been minor. The person that "wants" the work done (in the past) will pay for the total amount and then try and get money off the others. It usually means one person gets stung. That's how I don't want my brothers' company doing the work. I got stung - although it wasn't too great an amount back then.

    No vote has taken place. But if it is essential repairs the works must get done.

    There is no "agreement" in place. The building isn't factored or anything like that.

    The woman that has bought the property is based in England although she does quote the Tenements Scotland Act 2004.

    I don't want to pay for sub-standard work. I have little enough money as it is I don't want to have to pay for the same work twice.
    AT 1st SEPTEMBER 2009
    CASH......£ 321.41...
    BANK.....£ 625.75
    C-CARD...£ 5101.85...ISA......£ 120.00
    Loan from parents for car ~~ £ 5500.00

    AT 31st OCTOBER 2009
    CASH......£
    . 50.23...BANK.....£ 723.12
    C-CARD...£ 3818.67...ISA......£. 80.00
    Loan from parents for car ~~ £ 5380.00
  • propertyman
    propertyman Posts: 2,922 Forumite
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold";
    if you can show me one I will produce my daughter's unicorn
  • also need to check if there is any listed status or in a conservation area. Speak to the council and ask if there are any grants available. Work has just started on my daughters roof - grade B listed, conservation area and got a 50% grant through Aberdeen Heritage Trust. Mind you we first got the dreaded letter from the council in December 2010 and it has taken from then till now to get to the point of scaffolding going up. 40K cost split between 2 shops and 8 flats and no factor in place. It is a long process getting everyones agreement and yes we did all have to pay up front before the contractor would go on site. Employed an architectural technician to run the job for us and check the work as I was not about to go on a roof 5 floors up!!
  • sgun
    sgun Posts: 725 Forumite
    Part of the Furniture 500 Posts Name Dropper
    wow, pay the lot upfront? That sounds mad. I am based in England, doesn't make me less able to understand Scottish law. Boyf lives in flat in Edinburgh 5 days a week, I have made sure we have followed all the correct processes, get everything legal right and owners have to pay (I do legal stuff, contracts, negotiations etc within job so I took the lead on that part of the repairs).

    Yes its a pain getting the money off people (approx £12000 split 16 ways in our case) but if we hadn't done it no-one would and thats not a good base for an investment or a home.

    It sounds more like you are wary of the contractors she has got to quote, if that is the case get some quotes of your own. We had about 7 different quotes, everyone "knows someone who knows someone" but its only fair to let everyone involved have their say.

    Also if she is happy to organise then let her - its a long long painful process where you are taken for granted by some and resented by others but at least it gets done.

    DO NOT LET THE COUNCIL GET INVOLVED. (SN's are suspended in Edinburgh, thank god)
  • sgun
    sgun Posts: 725 Forumite
    Part of the Furniture 500 Posts Name Dropper
    also my brother is an architectural technologist so have had help there too. Pics of repairs to be carried out would help in determining repair/replace. Ogee is expensive but do they need a replace or a repair?
  • theesel1994
    theesel1994 Posts: 210 Forumite
    Thanks everyone that has answered. It has helped me a LOT.

    Reading that Tenement Management Scheme thing means if the deposit is over £100 it has to go into a joint maintenance account that two folk have to administer. This has me less worried now. I may get my brothers' company to quote for the work now. It will probably be twice the amount of the largest quote already - but it will be based on replacing the existing gutters with gutters of a similar standard.

    I'm not too bothered about the proper company that has quoted. They have a legitimate VAT Reg'n No and their accounts to companies house have been on time. I have no idea of the standard of their work just now - but at least I know they are legitimate. The Polish person sounds cash in hand that HMRC may never see a penny of.
    AT 1st SEPTEMBER 2009
    CASH......£ 321.41...
    BANK.....£ 625.75
    C-CARD...£ 5101.85...ISA......£ 120.00
    Loan from parents for car ~~ £ 5500.00

    AT 31st OCTOBER 2009
    CASH......£
    . 50.23...BANK.....£ 723.12
    C-CARD...£ 3818.67...ISA......£. 80.00
    Loan from parents for car ~~ £ 5380.00
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