Splitting repair costs

Michael22_2

Hello,

This is my first post. I was hoping for some advice.

We own a leasehold flat in a converted house (of three). In our dealings with the management company, we are responsible for 25% for all the expenses of the building, as we own the smallest flat. This includes management fees, general maintenance, service charge and insurance. Our lease states, “Proportion of Insurance and Service Charge – 25%”

We are about to pay, together with the other tenants, for some repairs to be done (our management company doesn’t deal with us much and we are trying to collectively purchase the freehold).

The tenants in the largest flat want a straight three-way split for the repairs, as they don’t want to pay more than everyone else for something that doesn’t affect them directly. The damage is in common parts (roof, hallway) and so doesn’t really affect the inside of any of the flats anyway. But, regardless of that, we thought that our share would be 25% as set out in the lease for the service charge. They say the lease doesn’t say how we split bills.

Is it right to judge these things on a case-by-case basis, according to how we are personally affected, or do we stick to what the lease has determined?

Any help would be much appreciated.

Doozergirl

On that basis, if something did affect your neighbour more directly, I assume that they would be prepared to pay more than their usual share then? :rolleyes:

My assumption, based on the lease, would be that you paid 25% of all costs. As you will be buying the freehold, you may eventually do away with service charge altogether, so I'd be inclined to stand my ground rather than let it go 'this once' rather than set a perecedent for yourself.

People interpret contracts differently, but them saying that the lease doesn't include you paying 25% of 'bills' certainly doesn't mean that the lease says that you need to pay a third of the bills either! The service charge does include 'bills', it includes the managing agent's bil, the accountant's bill, the communal electric bill (probably), the insurance company's bill, blah, blah....

I can't see what you can do except stand your ground and make sure you have legal cover with your insurance policy - just in case

Michael22_2

Thanks for the advice, Doozergirl. Yes, it's not a huge amount of money this time, but it's the precedent that's the worrying thing. I paid a straight three-way split (which is what the largest flat would prefer for everything, as it is less for them than the 40% they are allocated to pay) for another repair, because I was new here and hadn't got my head around everything. That lack of consistency doesn't help much.

PasturesNew

Yeah, don't let them bully you.
They knew the deal when they signed up. So did you.
They can't change the rules.
They aren't their rules to change.
They are legal agreements set out in writing that they agreed to - and no doubt their solicitor pointed out to them.

Stand your ground.

It's not like you're stiffing them. They are trying to stiff you.

Michael22_2

Thanks, PasturesNew. It's good to hear.