Flat sale - retention in respect of service charge?

Amelia22brown · 23 April 2013 at 2:56PM

Hi Hilda,

I agree it is common in respect of service charges; even these charges should pay in advance as well. However it is always essential to deal with good solicitor because there are many high profile agencies that source major portfolios and developments but does not prove to be effective.

propertyman · 23 April 2013 at 3:23PM

Unfortunately there is no time limit on the retention unless one was agreed save a statutory one of 6 years ( and that isnt in concrete).

As a lessee at the time you can write to the landlord ( shown on the bills) and require that they produce a summary of costs under section 21 LTA 1985

In fact given the date of the accounts, if they have not told you in the 18 months since the beginning of the 2011 accounting period, say 1st Jan 2011 of the year end is 31st December 2011, and 18 months ending on 30-6-2012 that the actual costs will or had exceeded the service charges you paid in that time, then they are statute barred from recovering any excess under section 20b LTA 1985 ( from you or the new owner) http://www.legislation.gov.uk/ukpga/1985/70/section/20B

Pass this mesage to your solicitor who can look it up and tell the purchases mob to release the retention as the Man Co cannot recover any excess.

Fire_Fox · 23 April 2013 at 3:30PM

I purchased this apartment directly from the developer, in the last week before exchange I had to pay a whack of service charge they were in arrears with and agreed to take on the liability for any shortfall for that year. You could just refuse, say you will pay up to date and that is it.