Landlord demanding £6000 from leaseholders

angeuk

Hi all,

My elderly father lives in a leasehold flat in a property around 50 years old. He pays around £1200 a year in service charges. This sometimes increases, depending on what work needs doing to the upkeep of the building.

He recently got letters regarding the replacement and repair work on balconies and balustrades. The original estimates and tenders were around £350k for all works. This has now risen to £600k. He told me yesterday that they want £6k off him for the work, to be paid within 21 days. They originally said about 2k. They sent lists of tenders for each job but haven't said why they picked the ones they did.

What is he supposed to do if he hasn't got it? I'd appreciate any advice.

Comms69

Find it...


Has the freeholder not got a sinking fund to use for this type of work? The accounts should be available yearly.

eddddy

There should have been a 'section 20 consultation' process - which typically takes around 6 months. I guess that's what he means by "he recently got letters".

See: https://www.lease-advice.org/faq/what-is-the-section-20-consultation-process-for-major-works/

You can also look at this page entitled "My landlord has carried out Section 20 consultation but I am still unhappy about the service charges I’m being asked to pay. What can I do?":

https://www.lease-advice.org/faq/my-landlord-has-carried-out-section-20-consultation-but-i-am-still-unhappy-about-the-service-charges-im-being-asked-to-pay-what-can-i-do/

As the link says, if your father thinks the cost is 'unreasonable', he can challenge it.

But 'unreasonable' in this context might mean the work is not necessary or it should be possible to do it more cheaply.

Unfortunately, it doesn't mean 'unreasonable' in the sense that your father might not be able to afford it.

angeuk

Thanks for the replies. I'll be honest, I haven't much of a clue about leasehold or the situation my father is in.

I do recall him getting letters several months ago, stating the works should be in the £350k region. That the works now have risen to £600k seems unreasonable.

I shall make enquiries regarding the sinking fund.

Much appreciated, thank you.

IAmWales

Is your father in receipt of means tested benefits? If so he may be eligible for assistance in paying the charge.

Always worth looking into whether there are any links between the managing agent/ landlord and the contractor that has been awarded the contract. I've had a bill reduced when I discovered that one of the MA directors was also on the board at the contractor!

eddddy

angeuk wrote: »

I do recall him getting letters several months ago, stating the works should be in the £350k region. That the works now have risen to £600k seems unreasonable.

I see what you're saying - but that's not how 'unreasonable'/'reasonable' is defined in the Landlord and Tenant Act 1985.

To show that £600k is not 'reasonable', you could start by getting a chartered surveyor's report saying that the balconies should cost less than £600k to fix.


(It may be that the freeholder was incompetent in initially estimating the repair cost at £350k, when in fact £600k was a 'reasonable' cost - but that's a different issue. And it's not a basis for paying a reduced amount.)

angeuk

IAmWales wrote: »

Is your father in receipt of means tested benefits? If so he may be eligible for assistance in paying the charge.

Always worth looking into whether there are any links between the managing agent/ landlord and the contractor that has been awarded the contract. I've had a bill reduced when I discovered that one of the MA directors was also on the board at the contractor!

Ii will look into that. They do seem to use one contractor for almost everything. Thanks.

lincroft1710

angeuk wrote: »

They do seem to use one contractor for almost everything. Thanks.

There is nothing wrong with that if the contractor is reliable, does a good job and is competitive in their prices.

Chappers27

Wow. Harsh to choose to live somewhere and then get letters telling you to pay and you have no choice of contractor or amount paid. I'd refuse to pay, sell up and buy a freehold.

Keep_pedalling

Chappers27 wrote: »

Wow. Harsh to choose to live somewhere and then get letters telling you to pay and you have no choice of contractor or amount paid. I'd refuse to pay, sell up and buy a freehold.

And that is going to cost less than £6000?

C_Mababejive

And here is a very good reason to think very carefully about buying a flat/apartment.