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Problems with Managemnt Company - what a mess...

SRB_63
Posts: 2 Newbie
OK, so I have a bit of a mess here, and would appreciate any advice.
I bought the leasehold on a flat two years ago, and initially there were no problems. However, there was a small issue with damp, but the Managing Agents came out and dealt with it. Unfortunately, the problem came back, and they had another couple of goes at the problem with the last one in March this year. The advice at the time was to leave it over the summer to dry out thoroughly and see what happened.
Anyway, come the start of the cold weather, the problem is back, so I put in a call to the Agent. Problem. It seems nothing is going to be done because the Management Company has no funds. I met with the Agents yesterday and got rather a lot more info...
The Sinking fund is non-existent, despite the figures shown in the accounts, because there is a historical problem with one Leaseholder. It seems that they haven't paid the service charge. Since 1994. But the accountants just added the arrears to the Assets column and that makes up the bulk of the sinking fund.
I am told that somewhere down the line, the original management company in the lease was dissolved, but the mystery leaseholder refused to accept the new management company and modified lease, so simply stopped paying.
Now, there are insufficient funds to engage a solicitor, all maintenance work has stopped, the gardener, window cleaner et al cancelled and if they do raise a levy to fix the damp problem, it will take up to a year to collect the funds before work can start.
So what can I do? My conveyancing solicitor's notes at the time said she had examined the accounts and they showed a healthy reserve fund, but that advice was clearly very wrong. There is no point in chasing the Management Company for breach of lease, as they're effectively broke.
If I have to resort to paying for the repair work myself, where do I stand in trying to get reimbursed? Right now, I am beginning to despair.
I bought the leasehold on a flat two years ago, and initially there were no problems. However, there was a small issue with damp, but the Managing Agents came out and dealt with it. Unfortunately, the problem came back, and they had another couple of goes at the problem with the last one in March this year. The advice at the time was to leave it over the summer to dry out thoroughly and see what happened.
Anyway, come the start of the cold weather, the problem is back, so I put in a call to the Agent. Problem. It seems nothing is going to be done because the Management Company has no funds. I met with the Agents yesterday and got rather a lot more info...
The Sinking fund is non-existent, despite the figures shown in the accounts, because there is a historical problem with one Leaseholder. It seems that they haven't paid the service charge. Since 1994. But the accountants just added the arrears to the Assets column and that makes up the bulk of the sinking fund.
I am told that somewhere down the line, the original management company in the lease was dissolved, but the mystery leaseholder refused to accept the new management company and modified lease, so simply stopped paying.
Now, there are insufficient funds to engage a solicitor, all maintenance work has stopped, the gardener, window cleaner et al cancelled and if they do raise a levy to fix the damp problem, it will take up to a year to collect the funds before work can start.
So what can I do? My conveyancing solicitor's notes at the time said she had examined the accounts and they showed a healthy reserve fund, but that advice was clearly very wrong. There is no point in chasing the Management Company for breach of lease, as they're effectively broke.
If I have to resort to paying for the repair work myself, where do I stand in trying to get reimbursed? Right now, I am beginning to despair.
0
Comments
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You need to get some professional advice.
Useful link here:
http://england.shelter.org.uk/get_advice/repairs_and_bad_conditions/responsibility_for_repairs/leasehold_repairs0 -
Hmm. I spoke to a specialist in RTM, breaches etc and their response was, "Oooh, I need to go and discuss this with a senior colleague, that sounds tricky."0
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Just moved from a freehold property but on a private estate with service charges were the MA was given a set of directions to take by the Managing Company (owners) to start action after certain dates were missed. First letter at 21 days, second 42 days etc and then solicitors.
The lease will say that the service charges are to be paid etc and if not then off to court to recover the them and if necessary by re-possessing the flat. We came close to this but the flat sold and the debts cleared just before hand.
You could do with getting the other flat owners together and forming a limited company to set policy and charges etc which are then managed on a day to day basis by the MA.
If the MA won't take action then the owners need to sack them and replace them with a company that will.0
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