Help with service charge - leasehold property

icklemonster83

I have a leasehold property with 111 years left on the lease. There are 6 properties in a row, of which I own the lease for one of them. To the side of the properties, there are 6 storage units.
I have just had the landlord management company phone up to say they would like to demolish or refurbish the storage units, and it will be at a cost - either £30k split 6 ways for the demolitions, or £18k for the refurbishment? Ideally they would like to demolish them as they feel they are causing anti-social behaviour.
I pointed out surely they cannot charge me to demolish the units, as they are included on my lease??? There response was well maybe i should seek legal advice on the matter??? WTH! Surely half way through the lease of a building they can't demolish it and then expect the leaseholder to pay? My lease only mentions paying for upkeep?
Now going out of my mind with worry, i certainly don't have £5k to put down as I'm on maternity leave and money is very tight! Also, legal advice is going to be costly. Can anyone help?

icklemonster83

Also, should have mentioned they said they would be writing to me to start a 60 day consultation period to decide what one to opt for. It didn't sound like there was the option to refuse all works altogether. Does anyone know if you can refuse altogether?

G_M

Check out http://www.lease-advice.org/

If the units are on the lease, then they cannot demolish them and not replace.

But
* do you use your unit?
* Is it in good condition or in needof refurbishment?
* is there an anti-social behaviour problem? Caused how/why? Will demolition help this?
* Who has instigated this? Have your fellow leaseholders complained?
* Have you discussed with the other leaseholders? What do they thinkof the idea?
* will refurbishment/demolition increase the value of your lease?

Guest101

Management companies never tell you all the option, just the ones they want you to choose.

G_M is right

icklemonster83

I probably need to add a little more detail - so I rent out the property, I'm on of those 'accidental' landlords, who couldn't sell it in the recession, but needed to relocate. I haven't been able to put any rent money by for repairs as I don't make anything after the consent to let fee, and then the money I have to give to the revenue as it is on a repayment mortgage. I can't get a buy-to-let mortgage as not enough equity in it. I was actually thinking of trying to sell it again so it falls within the 3 years of me not living there so not having to pay capital gains. Anyway, nobody is going to want to buy it now with these works hanging over it

In answer to your individual points:

If the units are on the lease, then they cannot demolish them and not replace. Would I have to pay for this?

* do you use your unit?Not sure, as I don't live there, not sure if my tenants do. When I lived there I once used it to store a sofa.ETA - would it make a difference if the tenantsdo use it, I could ask?
* Is it in good condition or in needof refurbishment? They are not in good condition. No works have been carried out on them in the time I have owned the property.
* is there an anti-social behaviour problem? Caused how/why? Will demolition help this? The storage units have apparently been broken into twice which warrants the anti-social behaviour statement
* Who has instigated this? Have your fellow leaseholders complained? They didn't say that anybody had complained, just that they had been broken into twice
* Have you discussed with the other leaseholders? What do they thinkof the idea? The property is over 100 miles away from where I currently live, so not had chance to discuss this. If they are not in favour will this make a difference? Or if they are what implications could this have?
* will refurbishment/demolition increase the value of your lease? Absolutely no idea? I imagine as they are not in the best condition it would have no effect on the property price. The storage units are also 5 properties along from mine, so you can't even notice them from the property. If I was to speak to a local estate agent maybe I could find out. What implication would it have if it added or decreased the value?
Thank you so much for taking the time to respond

Guest101

It's tenuace to say 2 break ins = anti social behaviour. It just mean they need to tighten up the security.

Constant noise, kids drinking, graffitti etc is anti social!

What is the management company responsible for?? ike what does the contract say??

olly300

OP even though you aren't around it's a good idea to have the number of a least one of your neighbours for many reasons.

Management companies like the easy route so if you and a few other leaseholders make it known you are going to make it difficult for them to put a rubber stamp consultation through, and one of you has access to a solicitor/surveyor they may be more willing to do what you ask.

G_M

icklemonster83 wrote: »

If the units are on the lease, then they cannot demolish them and not replace. Would I have to pay for this?
Yes. Ultimately leaseholders pay,either from the annual service chargeor via a one-offpayment

* do you use your unit?Not sure, as I don't live there, not sure if my tenants do. When I lived there I once used it to store a sofa.ETA - would it make a difference if the tenantsdo use it, I could ask?
I was trying to establish how useful these units are. Whether it matters(to you/your tenants) what condition they are in/how secure they are.
* Is it in good condition or in needof refurbishment? They are not in good condition. No works have been carried out on them in the time I have owned the property.
Si it sounds like something needsto be done to them....
* is there an anti-social behaviour problem? Caused how/why? Will demolition help this? The storage units have apparently been broken into twice which warrants the anti-social behaviour statement
As suggested, another option is better security.Lighting? Cameras? New locks? Shutters? Security guard.....
* Who has instigated this? Have your fellow leaseholders complained? They didn't say that anybody had complained, just that they had been broken into twice
Find out.
* Have you discussed with the other leaseholders? What do they thinkof the idea? The property is over 100 miles away from where I currently live, so not had chance to discuss this. If they are not in favour will this make a difference? Or if they are what implications could this have?
Of course! If 5 leaseholders want the units refurbished and only you object, you're notgoing to get far are you!?
If all 6 of you object, or make an alternative proposal (eg new locks), it's a different ball-game!
* will refurbishment/demolition increase the value of your lease? Absolutely no idea?
For such an unambiguous statement you don't seem too sure...
I imagine as they are not in the best condition it would have no effect on the property price.
Surely if they are "not in the best condition" then refurbishing them will increase the value of the lease. Just as replacing a crummy old kitchen with a spanking new one does.
The storage units are also 5 properties along from mine, so you can't even notice them from the property. If I was to speak to a local estate agent maybe I could find out. What implication would it have if it added or decreased the value?
Well, if you spend some money on refurbishment, and then sell (as you seem to be planning anyway), then if the value has gone up you'll get some/all of your money back...
Thank you so much for taking the time to respond

Being 100 miles away makes it harder. You can either say "It's so far,I can't do anything" and wait for the bill to arrive, or you can make an effort, go look at the units to assess their condition and the problem for yourself (they DO belong toyou right?); visit your tenants and get their opinion; talk tothe other leaseholders; and THEN consider your options....