Freeholder paying Service Charges

Elizabeth_Mckellar

I am a homeowner of a freehold property and have been paying a service charge to a HA who own the estate. I was paying an annual fee of £80, increased to £150 per annum. In Jan this year I received a bill for £40 advising me that the HA underestimed the previous years outgoings therefore we are liable to make up the difference. Two months later I received the full years bill which has doubled since last year. Their explanation is in previous years the HA have subsidised our service charges.Recently new bathrooms have been fitted in every rented property, I feel this recent increase is to pay for this. I cannot see why I am paying, there is nothing to show for what they claim they are doing. I can provide more information if requested.

Fire_Fox

Welcome. You should write to the housing association and ask for a breakdown of the charges, also check all your paperwork related to the purchase to see what is chargeable and marry the two up. If you are unhappy with the service you are receiving or you don't believe that work charged for has been completed write a letter of complaint.

dimbo61

Did you have a new bathroom fitted in your property?
Who do you think should pay for IT ?

blckbrd

It's a common misconception that those who have bought their property subsidise those who haven't.

Social housing is cheap because it's subsidised by the government. Changes in the subsidy for local authorities and housing associations means that costs will rise for both tenants and home owners.

You are not paying for anyone's kitchen/bathroom/decent homes works. You are paying your share of estate/communal costs in line with the transfer documentation relating to your purchase of your house.

If you are really unhappy - buy elsewhere. Estate costs can be a pain in the backside but noone forced you to buy (at a discount).

propertyman

Elizabeth_Mckellar wrote: »

I am a homeowner of a freehold property and have been paying a service charge to a HA who own the estate.

Pull out your purchase file as you should have a report from the lawyer explaining what and how you pay for charges. You should also look of the transfer of part or a deed of covenant that sets out the basis of charges.

the HA are working on the basis that the first bill you receive each year is an estimate and you get a subsequent bill for the actual costs less what you paid as the estimate.

However they may be in error if the transfer or deed do not calculate payments in this way- they often dont.

Shelldean

If you live on an estate, then surely there are communal areas that the HA service? gardening? bin stores? lighting for communal areas? ( these are just off the top of my head from our HA) We pay appox £20 a mth for these services, so appox £240 ayr.
I would guess maybe your charge is covering something similar.
We've also had yrs where the charge leaps up but others where it remains static.

Just checked ours, and it is actually £20.79 a mth, and it did not rise on 1 April as it usually does.