The Great "Leaseholders, tell us your service charge tales" hunt

chris_aaaaa

I see a few in the trail that go down the not paying route - Be very careful with that tactic.

If you pay and challenge in the leasehold tribunal, costs are limited and you can cover a lot of ground.

If you do not pay, the FH/MA can skip the tribunal and go to court aiming for forfeiture, this may well be changed to a charging order, and it should be transferred by the court to tribunal, but the effect is much greater charges (there is some precedent that action in preparation for forfeiture opens the floodgate on legal fees) and you can argue only on a limited scope in tribunal.

And you may well be better to get out if you can or take over management if possible, you can take over an re-employ the same manager if you like, they will be a lot more reasonable if you have the right to sack them.

If you get to tribunal, the tribunal's view of reasonable is based on other managed property (think of the wages of people who have a committee to base their wages on the wages of their peers).

And it is laughably easy for a bad agent to avoid regulation altogether on things like contracts for maintenance or even the air fresheners mentioned above.

No matter what, you have a right to see the accounts, get them every year even if you just file them.

You should get accounts every year that give you an overview, learn how to read these, you can tell if any flats (or the FH) are not paying their way. If you pay reserves, are they still there, or is the FH in debt to the property for instance?

(I'm just a leaseholder, can't give advice, do your own research)

geoffky

Now i know why i always said never buy leasehold..This thread re-enforces this view.

redonion

Goldiloz wrote: »

My landlord has done a huge amount of work to the property but charged us about £35,000 over the course of the past 8 years on top of normal service charge. People disputed it but got nowhere. Always get a big statement of works but it is so much money. I can afford to have an accountant or solicitor to fight them so just paying £250 per month to get rid of the debt. Can't sell till its gone.

Wow, the 35k was what you personally paid? Or the block?

eldaniel

redonion wrote: »

Wow, the 35k was what you personally paid? Or the block?

I live in East Anglia and my service charge was £500 when I got the flat, gradually increasing to £740 pa. On one occasion they requested extra £150 to renovate the blocks etc. I thought I am getting ripped off but I can see many people are in much worse situation than me.

On slightly different topic. Am I responsible by law for testing RCD box regularly, by paying electrician to do that? I press the test switch now and again, not sure if that is enough. If it has to be tested, would that be responsibility of myself or management company?
Thanks

redonion

eldaniel wrote: »

I live in East Anglia and my service charge was £500 when I got the flat, gradually increasing to £740 pa. On one occasion they requested extra £150 to renovate the blocks etc. I thought I am getting ripped off but I can see many people are in much worse situation than me.

Heck yes! Count your blessings. And then do it again. If you still live there though, also consider whether important work is getting done and properly, or it could be a bigger than needed shock later when it does need doing, plus there are some things that are safety issues (e.g. water tank).

On slightly different topic. Am I responsible by law for testing RCD box regularly, by paying electrician to do that? I press the test switch now and again, not sure if that is enough. If it has to be tested, would that be responsibility of myself or management company?
Thanks

Have you checked your lease?

I imagine the law of the land has something to say also, but I don't know what.

eldaniel

redonion wrote: »

If you still live there though, also consider whether important work is getting done and properly, or it could be a bigger than needed shock later when it does need doing, plus there are some things that are safety issues (e.g. water tank).

The main reason for an increase was that one company took over from another and blamed the first one for charging too little and not having sinking fund setup. So they basically increased the charge quickly as they took over but for the past 2 years not a penny increase. Estate is generally well maintained, but few things wish to be desired like waiting 2 months for the bulb to be changed etc.
Nothing major. Feel sorry for all people above who had such a bad experience.