Service charge for repairs questions

earlycomputers

I am the leaseholder of a flat in a block of other flats and we all pay a monthly service charge to the Freeholder (property management company). Recently one of the flats incurred damp problems and needs to have lots of damp proof work done, the result of which the other flat owners (leaseholders) have been stung with a huge bill to cover this work. My questions are:
- If the flat (which needs the work doing) has been negligent (ie not having any kitchen or bathroom extraction) which has caused the damp problems, should the freeholder/management company be responsible for the repairs? Fyi the freeholder/management company is only supposed to be responsible for for the repair etc of communal areas and the outer walls.
- I have repeatedly asked the management company to see the accounts/a statement of the reserve service charges fund, and they haven't sent it to me. Have I a right to see if I want to?
- The management company did not give me 30 days notice re the damp work (and as such I now won't have time to look for alternative quotes etc), what recourse do I have?
- What would happen if I refuse to pay this huge extra service charge?

many thanks

NeilCr

We own our freehold and I am one of the directors. We employ a management company to act on our behalf

They have a set procedure for the recovery of non paid service charges. Two letters than referral to a solicitor to instigate debt recovery. I know, in one instance, we ended up with a charge on a property. However, we also try to act sensibly and negotiate with the person concerned. And it is certainly different if the leaseholder is withholding only part of the service charge

On my way out now - if you haven't had any more responses (I am sure you will have) I'll try and answer the other questions when I get back

moneyistooshorttomention

30 days notice seems extremely short amount of notice. I thought that rather a lot more notice has to be given for larger amounts (ie over £250).

Is the amount they are after less than £250 then?

davidmcn

earlycomputers wrote: »

If the flat (which needs the work doing) has been negligent (ie not having any kitchen or bathroom extraction) which has caused the damp problems, should the freeholder/management company be responsible for the repairs? Fyi the freeholder/management company is only supposed to be responsible for for the repair etc of communal areas and the outer walls.

How would condensation within the flat cause damage to the communal areas? What does the work actually comprise?

Jenniefour

Are you absolutely certain that the damp problems in the flat concerned were definitely caused by not having extraction in kitchen and bathroom? If so, it must have been going on for a very long time indeed, unless they've been running a Turkish bath in there.

I know of three cases where there was damp/water ingress issues in individual flats, none of which had anything at all to do with lack of extractors/ventilation, and all of which caused a lot of damage which was expensive to repair and were paid for out of the sinking funds or money collected to cover the bill, quite rightly.

One was several roof tiles coming off/cracked and not being attended to for years - which caused a complete ceiling collapse in one room of a top floor flat. Luckily no-one was in the room at the time, but it also caused a lot of damage to furniture and belongings. Cause - lack of attention to maintenance over quite a few years.

Might be helpful to do a bit more research on exactly what service charges for maintenance cover, because your understanding is possibly not entirely accurate. Check your lease. Usually covers the fabric/structure, as it were, of the entire building, not just the walls. And redecoration of communal areas. Neglected maintenance can most certainly cause a problem internally for only one flat - and the owners should not be penalized for simply being the owners at the time a problem came to light.

Having said that, a few freeholders/property management companies get away with all kinds of nonsense. But I doubt whether a freeholder would even consider paying for repairs if they were certain it was caused by the inhabitants - they'd be more likely to be issuing a notice to said leaseholders to sort it out pronto.

But whether the costs are fair is another matter. Is your flat ex council housing? They are the ones where the leaseholders often find themselves faced with a big bill - unlike the management companies who, if they're running the show properly, will already have the funds to hand without needing to get everyone to cough up large lump sums.

skintpaul

Wouldnt damage be covered by FH buildings insurance?

G_M

*An occupier's lifestyle can certainly cause condensation and damp

* It would be highly unlikely that this would cause problems elsewhere in the building - a LOT of condensation over a LONG time.... however you've given very few details

* small amounts of expenditure can be paid out by the freehilder/management company without advance consultation

* larger amounts need a consultation process to be followed.

see http://www.lease-advice.org/

Should the landlord inform me about the work before it starts? Section 20 Consultation

Can I comment on the work? Section 20 Consultation

Can I comment on the estimates? Section 20 Consultation

Must the landlord tell me which contractor they will be using? Section 20 Consultation

Are there any circumstances in which I can legally withhold my service charge? Service Charges

I have received a service charge demand for works undertaken 2 years ago. Do I have to pay? Service Charges

My landlord is carrying out improvement works to the building, do I have to contribute towards the costs? Service Charges

I have received a demand for the estimated cost of major works. Do I have the right not to pay until the job has been completed? Service Charges

NeilCr

From a freeholder's point of view I wouldn't be at all interested in paying for repairs caused entirely by a leaseholder. As others have said you need to understand exactly what the problem is and what the cause was

Sometimes we don't claim off the insurance because it is cheaper and easier to get it done ourselves - once the excess and premium increase is taking into account. But you've said it's a huge service charge increase which would seem to indicate that the freeholder thinks it falls on them (and you) and not that particular flat

eddddy

It depends whose fault the damp is.

I've had damp damage in two flats repaired by the freeholder (and so recharged through the service charge), because the damp/damage was the freeholders 'fault'.

In one case, the freeholder's pipe was leaking. The freeholder disputed it for about a year, while the damage got worse.

In the other case, the freeholder's roof was leaking. They took an unreasonably long time to repair it, so the damage got worse.

In your case, are you sure that the damp was caused by condensation?


Edit to add...

But I guess the leaseholders could argue that the freeholders ran up unnecessary costs in both these cases, by unreasonably delaying the repairs...