New Build Home - Unreasonable Demand for Payment?

darenmatthews

I'd really appreciate some advice because in October2015 I bought a new-build home. there was to be a small annual charge of around £250 for maintenance of the landscaping.

Today I received a letter which stated that due to an error on their part, our small estate was never entered onto their financial systems and no demands have been sent out.

They have asked for payment of nearly £700 "as soon as possible or before 14-days". They apologised for their oversight.

The remittance was to be paid to a Management Company who's postal address was that of the house builder's head office. The director of this company is also a director of the house builder.

My problem is that I cannot afford to pay this amount in that small amount of time. I am also concerned that fees will increase. I accept that it needs to be paid but I cannot do it in 14 days.

I would like some advice on how best to approach this problem and also wonder about how this arrangement between a house builder and a management company works. The residents on the estate have no shareholding.

I'd be very grateful for some help please.

peter_we

One year at £250 per year does not equal £700.


How do they justify the charge and is it supoosed to be in advance or arrears?

Chanes

In does seem very unreasonable to make such a demand! I would speak to them and ask for it to be paid in installments and say that is the best you can offer. I think they'd be unlikely to press as long as they are getting the money. The fact that they have apologised for the oversight is useful if you mention they are sorry about the situation and should be fair!

G_M

peter_we wrote: »

One year at £250 per year does not equal £700.


How do they justify the charge and is it supoosed to be in advance or arrears?

Even if in adavance, 2 years is not £700.

Write back requesting a clear breakdown of the charge.

At the same time explain that it is unreasonable to expect immediate payment following their error and offer, say, 3 equal payments of the eventually agreed amount, at, say, monthly (or 3 monthly?) intervals.

darenmatthews

Thank you Chanes, I will suggest this. The charges are 2 x half-yearly amounts of £185 and another of £165 going back to 2015 when I bought. So it seems as thought the "£250 per year" mentioned when I bought the property has already increased.

darenmatthews

G_M wrote: »

Even if in adavance, 2 years is not £700.

Write back requesting a clear breakdown of the charge.

At the same time explain that it is unreasonable to expect immediate payment following their error and offer, say, 3 equal payments of the eventually agreed amount, at, say, monthly (or 3 monthly?) intervals.

They enclosed an "anticipated expenditure" statement (for the previous year) which includes:

Audit & Accountancy

Company Secretarial Fees

Estate Lighting electricity (these are the lampposts)

Estate lighting repairs and supplies (this is £750 for, quote: "provision for should any of the lighting needs repairs and to cover consumables such as bulbs which tend to be costly when they go wrong") - sic

Gardening (i.e. lawn mowing)

General repairs and Contingency

Insurance - Directors liability

Insurance - public liability

Management fees

eddddy

When you bought the property, you would have entered into an agreement to pay the service charges.

You need to check that agreement to see what you've agreed to pay for, if there is a limit on annual increases, etc

(e.g. it could be that the £250 mentioned was just the management fees)

maninthestreet

Do you have anything in writing to back up your claim of £250 per year fees??

eddddy

maninthestreet wrote: »

Do you have anything in writing to back up your claim of £250 per year fees??

It would probably only really help if it were part of the purchase contract (or a reply to a pre-contract enquiry).

Anything else written (or verbal) would probably be assumed to be 'subject to contract' - so the OP couldn't rely on it.

darenmatthews

I have searched through my paperwork and cannot see anything that is obvious which might relate to this agreement. I need to sit down and go through the details with a fine toothed comb. I just want to be clear on what is agreed with whom and what the terms and scope are.

davidmcn

I expect the £250 was just part of some vague marketing spiel, in practice they're not likely to guarantee anything beyond the current year's charges. And while the 14 days is unreasonable, you should really have budgeted something for the day when they caught up with you...