Bills for Maintenance and Refurbishment on Council Property

Revorocks

Hi,

I let out a property within a council owned block of flats on lease.
When purchasing the property I was aware of a large bill for renovating the elavator within the building and this was factored in.

I've just received a letter saying that they are planning on refurbishing the entire building.
They will be installing new insulation, repointing all the brickwork and other major improvements. They haven't sent the invoice yet but I estimate it is going to be another large bill.

Now I am wondering if this is right? I can just about afford to pay what I expect it to be, but I'm thinking if they can just bill me for whatever amount whenever they feel like it if I get hit with another one I might be in trouble.

Any ideas?

Thanks

Dan-Dan

Revorocks wrote: »

Hi,

I let out a property within a council owned block of flats on lease.
When purchasing the property I was aware of a large bill for renovating the elavator within the building and this was factored in.

I've just received a letter saying that they are planning on refurbishing the entire building.
They will be installing new insulation, repointing all the brickwork and other major improvements. They haven't sent the invoice yet but I estimate it is going to be another large bill.

Now I am wondering if this is right? I can just about afford to pay what I expect it to be, but I'm thinking if they can just bill me for whatever amount whenever they feel like it if I get hit with another one I might be in trouble.

Any ideas?

Thanks

sell the flat ?

Revorocks

Dan-Dan wrote: »

sell the flat ?

Would rather not... Just want to know if this is normal and if there is an upper limit or anything that they can charge.

Pixie5740

Bend over, touch your toes and brace yourself.

Councils are notorious for dishing out high bills to leaseholders. Is there a sinking fund that can absorb some if not all of the costs?

Edit: It seems councils can't operate sinking funds so that'll be a no to my question.

booksurr

Revorocks wrote: »

Would rather not... Just want to know if this is normal and if there is an upper limit or anything that they can charge.

yes it is normal
no there is no upper limit

you purchased a leasehold property which is not covered by a sinking fund. Therefore ANY costs arising from works to said property must be shared amongst the leaseholders - I take it you did not consider this as part of your get rich quick scheme?

PlutoinCapricorn

My council does get tenders for major works, and offers us the chance to query the charges before the work goes ahead. The invoicing is done one year after the work is complete.

It is always possible to question the leaseholders' liability for some work.

I thought that councils were not permitted to operate sink funds.

DTDfanBoy

It's par for the course, which is presumably why you got the flat for a cheaper price compared to other properties

Revorocks

booksurr wrote: »

yes it is normal
no there is no upper limit

you purchased a leasehold property which is not covered by a sinking fund. Therefore ANY costs arising from works to said property must be shared amongst the leaseholders - I take it you did not consider this as part of your get rich quick scheme?

There's no need to make rude comments like that. How can you say it's a get rich quick scheme?
I invested in a property and it is a long term investment.

I did know it was council owned but having never owned a council property did not know how often the billing is and much about their fees.

I just think it's mad that I pay a monthly maintenance fee, then when a large maintenance job comes up I have to pay the bill on that as well.

Thank you for your answer guys, I did notice it was a little cheaper than most other properties but it wasn't by a margin large enough to highlight any cause for concern.

PlutoinCapricorn

There are two types of service charge: day to day and one-off major works.

There are rules about how charges must be itemised and timescales for the presentation on bills.

Is there a residents' association?

This site is useful: http://www.lease-advice.org/

[Deleted User]

Hi Revorocks, I am in a similar position, waiting nervously for the bill to hit the mat for various works under the 'decent homes standard' which applies to all local authorities in England (or maybe UK, not sure). I found out about this under the searches my solicitor did when I bought, so I know roughly the amounts, but not the dates yet. Mine is about £12k over 5 years.

If it's larger works (more than £500?), they have to issue a section 20 notice, so you will get some advance notice. My council also allows 2 years interest free payments to spread it out. You don't have any choice in the matter, but there may be leaseholders representatives who help to see that the work is tendered for competitively.

Have a look at your local authority 'info for leaseholders' on their website.

PlutoinCapricorn

What does your lease say about recoverable charges?

This section of the website is very useful:

http://www.lease-advice.org/publications/documents/document.asp?item=14