Service charge

Dexterdrew

Hello all...newbie here and first post:j

I live in a leasehold flat, I'm on the ground and there is one above, it is purpose built.

We (upstairs and myself) both pay £67 per month for 'service' charges. This includes buildings insurance, however, there is no maintenance of any kind by the landlord, no gardens, landings etc. We both have our own gardens and front doors so nothing to maintain.

Can we contest this hugely inflated service/insurance charge?

I hope someone can give me some much needed advice.

Many thanks in advance.

Procrastinator333

It will come down to what is in the Terms of the leasehold. U would need to check with a solicitor. But my money is the terms are clear and u got no chance. One of the joys of a leasehold I'm afraid.

Snakey

You're not just paying for the insurance but also all the admin involved in running a management company. Even if it isn't doing anything except renewing the insurance and collecting your money and filing accounts and annual returns and telling you what to pay each year - somebody is probably collecting a salary for this. This won't be a massive amount but because it's only being divided between two of you it's something you'll notice.

Also, and probably more significant, there is probably a sinking fund for eventual future works such as a new roof.

See if you can get hold of the latest accounts. You have a right to know where your money's going, even if you cannot challenge it (which you generally can't unless it's so inflated that it's fraudulent).