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Management company billing me for a charge from previous owner's ownership
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coronita
Posts: 7 Forumite
Hi all,
I am having some issues with the management company of my flat and hope the experts here can shed some light!
The purchase of my flat was completed in October 2017, after which a certain amount of retention was held from the seller to cover any outstanding service charge they may be responsible for. Earlier this year, I received an invoice from the management company for service charge covering the period leading up to when my husband and I moved in. We paid the management company and got reimbursed through our solicitor, by the retention funds. Till then all should have been settled between us and the previous owner.
Last week we received our regular quarterly invoice for heat usage of the building. Apart from a charge for the first quarter of this year, there's an additional charge of £90+ for the period of April to June 2016, which is before my husband and I moved in. I called up the management company and said this charge should not be put on my bill as I did not live here in 2016, but the management company was not sympathetic to the situation and told me to ask my solicitor, who have completed my purchase long ago. I did call my solicitor and explain the situation, and they said they could try contacting the seller's solicitor but there's no guarantee they would pay this, as there is no longer a retention fund.
Yesterday there was another letter from the management company saying the charge from 2016 has arisen now because they'd only discovered recently this charge was not previously charged due to non receipt of the invoice from the energy supplier.
My question is, is my management company right to ask me and my husband to pay for this charge for the flat, even though we did not live here in 2016? What could they do if we refuse to pay this charge from 2016?
Any thoughts welcome! Thanks in advance!
I am having some issues with the management company of my flat and hope the experts here can shed some light!
The purchase of my flat was completed in October 2017, after which a certain amount of retention was held from the seller to cover any outstanding service charge they may be responsible for. Earlier this year, I received an invoice from the management company for service charge covering the period leading up to when my husband and I moved in. We paid the management company and got reimbursed through our solicitor, by the retention funds. Till then all should have been settled between us and the previous owner.
Last week we received our regular quarterly invoice for heat usage of the building. Apart from a charge for the first quarter of this year, there's an additional charge of £90+ for the period of April to June 2016, which is before my husband and I moved in. I called up the management company and said this charge should not be put on my bill as I did not live here in 2016, but the management company was not sympathetic to the situation and told me to ask my solicitor, who have completed my purchase long ago. I did call my solicitor and explain the situation, and they said they could try contacting the seller's solicitor but there's no guarantee they would pay this, as there is no longer a retention fund.
Yesterday there was another letter from the management company saying the charge from 2016 has arisen now because they'd only discovered recently this charge was not previously charged due to non receipt of the invoice from the energy supplier.
My question is, is my management company right to ask me and my husband to pay for this charge for the flat, even though we did not live here in 2016? What could they do if we refuse to pay this charge from 2016?
Any thoughts welcome! Thanks in advance!
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Comments
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My question is, is my management company right to ask me and my husband to pay for this charge for the flat, even though we did not live here in 2016?
Based on what you say, it sounds like the management company is correct to ask you to pay this bill.
Depending on what the sale/purchase contract said when you bought the flat, you might have the right to claim it back from the seller.
The problem is that if the seller refuses to pay, you'd end up having to take them to court to claim the money.What could they do if we refuse to pay this charge from 2016?
It's generally a bad idea to refuse to pay service charges (unless you are very, very sure that you are in the right). Leases often allow freeholders/management companies to charge late fees and legal costs (for solicitor's letters etc).
If you really do want to challenge this service charge, it might be better to pay it under protest, and then go to the tribunal to challenge it.0 -
Energy companies can't now charge bills for energy use incurred over 12 months previously
https://www.ofgem.gov.uk/consumers/household-gas-and-electricity-guide/who-contact-if-its-difficult-paying-energy-bills/energy-backbilling-your-rights
There is an intermediary involved here but would the 12 months limitation still be applicable?0 -
You took over the liablities of the lease so you owe the money.
This should have been dealt with during the conveyancing is via a retention. I understand there was a retention of some sort, but apparanty not enough to cover this?
By all means attempt to pursuade the sellers to pay you, but meanwhile, pay the management company - arrears and legal & admin fees for non-payment can add up.......0 -
Thanks for the clarification! The retention would have been enough to cover the outstanding charge, but it was only held until end of March as I vaguely recall, and we certainly did not see a charge from 2 years ago popping up, so this came as quite a surprise!
I was worried about the potential consequences with not paying, just felt it was not reasonable to bill us for this charge! Appreciate the help and will make the payment to save the troubles!0
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