Communal area management fees

melanieconway

Hi

I live in a detached house on a small development. I am certain my house is freehold, but there is a mix of flats on leasehold that are involved as part of the question below.

Despite the freehold bit, we have a number of covenants, one of which is to contribute to the upkeep of the communal areas (various grassy areas including a small children's play area).

As a community we are being billed quarterly for this grounds maintenance by a company that the builders chose to hand over the reins to. However we cannot see that we are getting value for money on this and a number of residents haven't been paying.

I think we would like to (as a community) sack the current maintenance people and appoint our own, preferably a local business who knows the area and would benefit from the trade, however I don't know how to go about this.

I spoke to one of the guys at work who deals with Service charges for business rentals and he said residential agreements have more rights than business, and that he could probably advise us to instigate a 'right to manage' but because we are freeholders he doesn't know (as the right to manage applies to leaseholders).

Any ideas? I ask as we have a residents meeting next week and I have had a tip off that this will be up for discussion, so would like to go armed with a few facts for debate.

Thanks in advance

propertyman

As a freeholder you are dependant on the title and the covenants allowing a review or performance clause, otherwise you are only able to challenge the costs under the supply of good and services Act.

If you arrange a mass non payment, amass evidence and ensure everyone pays what is owed into an account you all control, the company might be approached to say " walk away or we fight and you'll lose" and you agree a sum as a pay off.

If the service provider provides services to the flats as well, then the leaseholders have extensive powers to tackle performance or take over management ( even ownership of the freehold).

However in doing so the freeholders might be cast adrift and be stuck with the current provider, so you should ensure that you are part of the new arrangements and any application for say Right to manage includes the common areas and contributions from houses.

melanieconway

Thanks PM, that's a really comprehensive answer. I'll look at my docs from when we bought the house.

Fire_Fox

The leaseholders can request copies of the contract and invoices so you can see what is claimed to be being done for the money, might want to point some of them in the direction of this excellent site http://www.lease-advice.org/publications/documents/document.asp?item=14
The leaseholders cannot simply not pay for the grounds maintenance unless they are being billed separately - that just leaves their service charge account in general arrears. They put themselves in breach of contract if they withhold service charges (except in very limited circumstances), the legislation allows for them to challenge payments already made tho. Work is supposed to be of a "reasonable standard", charges "reasonable" and "reasonably incurred".

I suspect you would be best organising your mass protest simultaneously, but different action taken by the leaseholders and the freeholders.

propertyman

Fire_Fox wrote: »

but different action taken by the leaseholders and the freeholders.

Well no, that's problematic, as explained in #2.

Fire_Fox

propertyman wrote: »

Well no, that's problematic, as explained in #2.

What you suggest leaves the leaseholders in breach of contract and likely not withholding money for grounds maintenance as you intend. We are not only supposed to make suggestions that are working within the law here, not outside of it.

propertyman

Fire_Fox wrote: »

What you suggest leaves the leaseholders in breach of contract and likely not withholding money for grounds maintenance as you intend. We are not only supposed to make suggestions that are working within the law here, not outside of it.

No, as I said nothing of the sort about leaseholders, nor did I suggest simple non payment.

Fire_Fox

propertyman wrote: »

No, as I said nothing of the sort about leaseholders, nor did I suggest simple non payment.

Then you wording is unclear.

propertyman wrote: »

If you arrange a mass non payment, amass evidence and ensure everyone pays what is owed into an account you all control, the company might be approached to say " walk away or we fight and you'll lose" and you agree a sum as a pay off.