End Of Year Statement

cah1234

Hi All,

Apologies if this is the incorrect section but i couldn't find anywhere else relevant.

I live in a flat and have to pay monthly fees, for example for gardening, cleaning etc. I pay £38 per month by direct debit. The annual cost is estimated each year and they always under estimate, resulting in me having to pay extra.

Anyway, i have just received my annual statement and it has an extra charge for "communal gardening other" for a total of £2134 meaning i now owe £533 as i live in a block of four.

I don't recall being informed of any works that would require me to pay this amount. I can only think it is a result of a tree being removed from the front garden.

Where do i stand with this? I have pretty sure i wasn't informed of this work and certainly haven't signed anything to agree to it.

Unfortunately i don't have that sort of money lying around and cannot pay it. Can i refuse? What are my rights?

Any info will be greatly received.

Many thanks in advance.

stator

Ouch, sorry I don't know about the legal position but I would definitely write a letter demanding a full explanation

Pete9501

Do you own a lease hold flat? if so in the lease will be details that cover this and the appeal process. The managing agent is helping themselves. If they slightly over charge during the year it is always much easier to give a little back then ask for more. The appeal process is probably through RICS.

We have a similar set up but free hold with covenants for the private estate costs, one of the reasons we are moving.

eddddy

Hi cah1234

So are you saying you own a leasehold flat, and you are questioning the service charges from the freeholder (or their Managing Agent)?

If so, and the £2134 does relate to a tree removal, it sounds like there should have been a section 20 consultation:

Section 20 of the Landlord and Tenant Act 1985 requires the landlord to consult the leaseholders before carrying out major works which will cost any individual leaseholder more than £250. If consultation is not undertaken the landlord cannot recover more than £250 from any individual leaseholder towards the cost of the works unless the First-tier Tribunal (Property Chamber) has dispensed with the requirement to consult.

Source: http://www.lease-advice.org/information/faqs/faq.asp?item=74

So you should have received a series of notifications in advance, giving you the opportunity to object, and telling you the costs etc.


You mention that your service charge is collected by direct debit (as opposed to paid by standing order). That suggests that your freeholder is a large, well established organisation, who should be well aware of section 20 requirements.

Anyway, if they didn't follow the section 20 process, you may have some recourse. But if they did, you will probably have to pay.

LEASE (The Leasehold Advisory Service) have a telephone enquiry line that help with this sort of thing: See (top left of page) :http://www.lease-advice.org/