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Excessive admin charges on leasehold major works
daztraction
Posts: 59 Forumite
Hi folks,
I'm a leaseholder in a flat of a block of six, and the freehold is owned by our city council.
Last year, they notified us (via a Section 20, a Notification of Major Works) that they were replacing our flat roof with a new one, with a potential £6,000-worth of charges to pay each, with the potential of a bill to arrive any day now.
The bill has finally arrived, and it's came to £24,670, so that's £4,111.67 each. However, the council have slapped an £1,541.88 admin charge on top (so that's an extra £256.98 each to pay.)
While I could do without the £4,111.67 charge for a roof that wasn't actually needed, I have came to terms with the fact that, as a leaseholder, I have to pay it. However, it's the admin charge that's getting my goat.
So, can I reduce this administration charge? Would £1,541.88 be a fair charge to pay for the administration for a new roof for six flats (only four of which actually have to pay this charge as the other two are council tenants?)
Any help here would be appreciated!
I'm a leaseholder in a flat of a block of six, and the freehold is owned by our city council.
Last year, they notified us (via a Section 20, a Notification of Major Works) that they were replacing our flat roof with a new one, with a potential £6,000-worth of charges to pay each, with the potential of a bill to arrive any day now.
The bill has finally arrived, and it's came to £24,670, so that's £4,111.67 each. However, the council have slapped an £1,541.88 admin charge on top (so that's an extra £256.98 each to pay.)
While I could do without the £4,111.67 charge for a roof that wasn't actually needed, I have came to terms with the fact that, as a leaseholder, I have to pay it. However, it's the admin charge that's getting my goat.
So, can I reduce this administration charge? Would £1,541.88 be a fair charge to pay for the administration for a new roof for six flats (only four of which actually have to pay this charge as the other two are council tenants?)
Any help here would be appreciated!
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Comments
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Personally I'd never live anywhere that was leasehold where the freeholder has free rain to do what they like and then send bills for £1000s to the leaseholder. No way.0
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What does the lease say about admin charges?0
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Deleted_User wrote: »Personally I'd never live anywhere that was leasehold where the freeholder has free rain to do what they like and then send bills for £1000s to the leaseholder. No way.
I was actually expecting something a bit helpful regarding the admin charge, rather than what kind of housing arrangement that you would personally pick, but thanks for your contribution.0 -
What does the lease say about admin charges?
I've no idea, I'll dig out the lease when I get back home from work. The admin charge doesn't seem to be a percentage figure of the work carried out though. It's just that £1,541.88 seems to be an excessive amount for "admin", and I want to know whether that's a suitable figure for Major Works.0 -
Could you contact them to ask for a breakdown of what the admin fee actually covers? I think it sounds ridiculously high and I would want to know exactly how they arrived at the figure (rather then it seemingly being a "finger in the air" job)!0
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Assuming that the council have to pay someone to do the admin for their leaseholders then it seems fair. Two people earning £25 an hour for a week to sort out the billing etc. for the major works sounds about par for the course."If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair0
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Could you contact them to ask for a breakdown of what the admin fee actually covers? I think it sounds ridiculously high and I would want to know exactly how they arrived at the figure (rather then it seemingly being a "finger in the air" job)!
I think I may just do that, cheers!0 -
Assuming that the council have to pay someone to do the admin for their leaseholders then it seems fair. Two people earning £25 an hour for a week to sort out the billing etc. for the major works sounds about par for the course.
They don't employ people just for the billing for the major works, it's the same people that they use to send out annual service charges, ground rent etc etc. The admin charges works out at about a tenner for the annual service charge, so why it's one-and-a-half grand this time around is beyond me.
Unless it is worked out by some kind of berserk percentage of the total works carried out or it's an "admin" charge carried out by the roof builders.0 -
daztraction wrote: »I was actually expecting something a bit helpful regarding the admin charge, rather than what kind of housing arrangement that you would personally pick, but thanks for your contribution.
You're welcome
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daztraction wrote: »They don't employ people just for the billing for the major works, it's the same people that they use to send out annual service charges, ground rent etc etc.
Maybe not but the admin charge may be billable to leaseholders at the hourly rate."If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair0
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