Urgent. Massive service charges bill, eager states. Help!!

DawnRose8

As the title says, I have just received a lovely email asking for almost 2k in maintenance
They're charging extortionate amounts for 'common parts cleaning'. They literally cleaned the one shared hall way ONCE since I moved in a year ago.
They're also charging the entirety of next years management fee up front.
The management fee has been added on to all the estimated individual charges for next year (like common parts electricity)so they're asking for settlement for last year and the next year in advance.
Can anyone help please?

Rosemary7391

Sounds like you've got two potential issues..


1. Are they able to ask for their fee in advance? Check your lease I guess for this.


2. Is the work charged for being done? £950 for cleaning for a year would be reasonable IMO - that's less than £20 a week. My close is done weekly. If it is only being done once a year (!) that sounds like something you should chase with the management co rather than dispute the amount ... what are the other charges you feel are unreasonable?





If the £2k bill covers all of this year and part of next I think it is likely not unreasonable if all the things being charged for are actually happening. That's a bit more than what I pay, but it shows in the state of the place... do you have a sinking fund ? Contributions to that will increase your service charge too but it works out better in the long run since you're less likely to be hit with a large bill.


Edit: the management fee covers their costs for managing the building - time getting quotes, chasing contractors, preparing accounts, getting the money in, answering your questions. It doesn't cover actually doing the work.

eddddy

You may be slightly misunderstanding the process.

DawnRose8 wrote: »

They're charging extortionate amounts like £950 for 'common parts cleaning'. They literally cleaned the one shared hall way ONCE since I moved in a year ago.

It's more likely that they paid a contractor £950 for cleaning.

You can request to see the invoice to see what the contractor is charging for.

If they're not doing what they're charging for, you should tell the management co. The management co may not realise, if nobody tells them.

Alternatively, if they are paying the contractor an unreasonably high rate for the work that's being done, there are ways to challenge it.

The same goes for all other charges on your service charge statement.

DawnRose8 wrote: »

They're also charging the entirety of next years management fee up front.

Check your lease to see if that's allowed. (It probably is.)

DawnRose8 wrote: »

so they're asking for settlement for last year and the next year in advance.

It will probably be an adjustment for last year - i.e. You pay an estimated amount in advance. Then at the end of the year, when they work out what they've actually spent, you may have to pay a bit more, or you may get a rebate.

DawnRose8 wrote: »

Surely the management fee is supposed to COVER these charges, not be charged in addition to them?

No.

As with the cleaning, the management co pay the bills, then split the cost amongst the leaseholders.

i.e. A lot of what the management co do is admin. And they charge a fee for doing that admin.

DawnRose8

Oh yes, and they appear to have increased the management fee from £1000 to £1700.
Devastated.

DawnRose8

I obviously didn't understand. I thought the management fee paid for things like cleaning, electricity for shared areas etc.
I didn't realise I pay a management fee AND then my share of building insurance, electricity, cleaning. That makes no sense to me.
This management company are well known to rip off leaseholders and charge high sums for nothing. The building is not in a bad state of repair, it was a new conversion when we moved in.
I literally don't have a spare £2k.

eddddy

DawnRose8 wrote: »

Oh yes, and they appear to have increased the management fee from £1000 to £1700.
Devastated.

How many flats is that fee split amongst?

You can ask them why they've increased the fee so much. Unless something has changed, that does sound like an unreasonable increase.

DawnRose8

I obviously didn't understand. I thought the maintenance fee of £1000 pa paid for things like cleaning, electricity for shared areas etc.
I didn't realise I pay their management fee AND then my share of building insurance, electricity, cleaning. That makes no sense to me.
This management company are well known to rip off leaseholders and charge high sums for nothing. The building is not in a bad state of repair, it was a new conversion when we moved in.
I literally don't have a spare £2k.

Sapphire

DawnRose8 wrote: »

I obviously didn't understand. I thought the management fee paid for things like cleaning, electricity for shared areas etc.
I didn't realise I pay a management fee AND then my share of building insurance, electricity, cleaning. That makes no sense to me.
This management company are well known to rip off leaseholders and charge high sums for nothing. The building is not in a bad state of repair, it was a new conversion when we moved in.
I literally don't have a spare £2k.

Unfortunately, this seems to be a big problem with property companies. I would never move into a home where there are things like 'management fees' or 'maintenance fees', especially where there is a potential for them to rise. I prefer to 'manage' and 'improve' my own property.

What does the lease say about such fees, and increases in same?

DawnRose8

eddddy wrote: »

How many flats is that fee split amongst?

You can ask them why they've increased the fee so much. Unless something has changed, that does sound like an unreasonable increase.

It's just six flats.

eddddy

DawnRose8 wrote: »

It's just six flats.

So just to be clear... you're saying that each of the 6 flats is being charged £2k (on a newish conversion).

That's a total of £12k.

Can you list a few of the bigger things on the statement that add up to the £12k?

DawnRose8

Sapphire wrote: »

Unfortunately, this seems to be a big problem with property companies. I would never move into a home where there are things like 'management fees' or 'maintenance fees', especially where there is a potential for them to rise. I prefer to 'manage' and 'improve' my own property.

What does the lease say about such fees, and increases in same?

Unfortunately I couldn't afford a freehold/house with my divorce settlement. I had no experience of management companies but if I'd known it was Eagerstates I wouldn't have bought it.
I haven't got the lease out yet but I'm pretty sure it says increases must be 'reasonable'-whatever that means, is up for discussion.