Identical flats in same development being charged vastly different service charges:

confused_landlord

Can anyone advise me if it is legal for managing agents to charge vastly different amounts (3 times as much) in service charge, for managing identical flats in different blocks of the same development.

Surely, the amount they charge should be somewhat related to the costs incurred for the cleaning, utilities etc and so they should have no reason to charge so much more in certain blocks...??

wealdroam

confused_landlord wrote: »

Can anyone advise me if it is legal for managing agents to charge vastly different amounts (3 times as much) in service charge, for managing identical flats in different blocks of the same development.

Surely, the amount they charge should be somewhat related to the costs incurred for the cleaning, utilities etc and so they should have no reason to charge so much more in certain blocks...??

Yes, the amount they charge should be somewhat related to the costs incurred for the cleaning, utilities etc.

It's the 'etc' that may vary.

For example, if there is more vandalism in one block I would expect the service charge to be higher for that block.

I'm sure you can think of other reasons for a variation, but three times the charge does take some swallowing.

How do the managing agents justify this difference?

Perhaps this thread would be better on The House Buying, Renting & Selling Board where there are probably people more knowledgeable in these matters.

NeilCr

We do be because the blocks have different ongoing and long term maintenance issues - and some have larger communal areas/more windows

But, as wealdroam says, three times does seem a lot

I'd ask them the question

hollydays

Could this have anything to do with credit rating i.e. Risk?

Bogalot

hollydays wrote: »

Could this have anything to do with credit rating i.e. Risk?

No. Insurance will be a block policy, the insurer wouldn't even be aware of the individual leaseholders details. Risk (and higher premiums) may be an issue if more claims had been made in one block than the other. Or it may be nothing to do with insurance at all.

OP you should have a breakdown of the service charge. You should also be able to see the same for the other block in the estate accounts. Where does the difference arise?