Leaseholder Service Charge re Electricity

bowmanbird

HI

Does anyone know if there are legal restrictions on freeholders charging extra on electricity costs?

The freeholder of my building pays for the cost of communal electricity to the building (contains 3 flats) which basically is supply to 3 lightbulbs and a fire alarm system.

The freeholder has sent me an estimate of £1000 for the coming 12 months which when you consider my own estimate is around £500, is a bit much!

I am of course challenging this but wondered if there were legal constraints on the freeholder in being able to do this?

Thanks,

sal_III

What was the bill for the previous 12 months?

On a side note I would be pushing to purchase the freehold if it's only 3 flats in the building.

HampshireH

If your communal areas operate a fire alarm system then you will also need to pay for the monthly festing and annual maintenance of that system plus any management costs such as if it is linked to the fire service. These will be factored into your service charge. Do you have emergency lighting too?

Any communal sockets?

HampshireH

Testing not festing. Apologies unable to edit on my phone.

eddddy

So just to be clear, it's just the communal electricity cost that's estimated at £1000 - not the whole list of service charges.

bowmanbird wrote: »

Does anyone know if there are legal restrictions on freeholders charging extra on electricity costs?

It doesn't really work like that. The freeholder is estimating that the cost of communal electricity will be £1000 - and you have to pay a share of that estimate.

If it turns out to be less than that, you will get a rebate. (If it turns out to be more, you'll have to pay the extra.)


If you think that estimate is unreasonable, you can potentially challenge it at a tribunal. But, like I say, if you pay it and it turns out to be too much, you should get a rebate at the end of the year anyway.