Flat "owner" refuses to pay service charges

littlerock

My sister lives in a large 1930s block of private flats where the head lease is owned by a well known London property estate. The estate tried, and failed, some years ago, to stop renewing the leases as the flats changed hands. This means a number of the flat owners have long leases (like my sister who got hers extended when she bought it 10 years ago) and other long standing owners have shorter leases.

Recently a builder/developer has been approaching some of the older owners and purchased their flats at a premium. He now owns around 12 flats which he is doing up, not sure whether to sell or let.

Anyway the estate levies a management and service charge on all the owners and recently they were all required to contribute to repainting the exterior. The builder refused to pay and work has stopped on part of the frontage as a result.

Now it is going to court. My sister is suprised the builder would take on the estate which is wealthy and litigious. But he clearly has a solicitor in tow so must have a case.

Under what circumstances can a leasehold owner in a block of flats, refuse to pay their share of the maintenance? Is there some legal loophole the builder is exploiting? Does anyone know?

wealdroam

Probably best asked on the House Buying Renting and Selling board.

Ectophile

If the works aren't small (and a complete re-decoration won't be), then there is a long and tedious process to be followed before work starts. It involves multiple steps of consultations and getting quotes for the work to be done.

If the freeholder hasn't followed the process correctly, then a leaseholder can refuse to pay.