We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Leasehold Service Charges (Genesis HA)
JohnnyZee
Posts: 41 Forumite
Hi guys,
I am a leaseholder of a fairly new built flat in London. The freeholder is Genesis Housing Association. We have received our annual service charge statement for 2017/18 - it is quite high to say the least! As leaseholders we have the right to ask for back up invoices (Section 22 of LTA 1985).
However, Genesis is providing us with Bulk invoices (covering the whole of Barnet and Brent) for the costs incurred (e.g. Block Cleaning, Lift maintenance etc). The bulk invoices cover all the properties that Genesis own in Barnet and Brent. Hence, for cleaning costs, we have been provided an invoice of c.£300K per month. There is no breakdown/calculation of £300K into £1,500 (our charge). Therefore, how can we, as leaseholders, verify whether the service charges are indeed accurate? Isn't there a law stating service charges need to be clear and easily verified? There could easily be errors or dare I say some fraud involved if we are being charged random costs without any back up invoices?
Please, if anyone has any knowledge on this matter, could you assist? I really appreciate your help.
Many thanks,
J.
I am a leaseholder of a fairly new built flat in London. The freeholder is Genesis Housing Association. We have received our annual service charge statement for 2017/18 - it is quite high to say the least! As leaseholders we have the right to ask for back up invoices (Section 22 of LTA 1985).
However, Genesis is providing us with Bulk invoices (covering the whole of Barnet and Brent) for the costs incurred (e.g. Block Cleaning, Lift maintenance etc). The bulk invoices cover all the properties that Genesis own in Barnet and Brent. Hence, for cleaning costs, we have been provided an invoice of c.£300K per month. There is no breakdown/calculation of £300K into £1,500 (our charge). Therefore, how can we, as leaseholders, verify whether the service charges are indeed accurate? Isn't there a law stating service charges need to be clear and easily verified? There could easily be errors or dare I say some fraud involved if we are being charged random costs without any back up invoices?
Please, if anyone has any knowledge on this matter, could you assist? I really appreciate your help.
Many thanks,
J.
0
Comments
-
Isn't there a law stating service charges need to be clear and easily verified?
The law says that the service charges must be 'reasonable' (with no specific definition of what 'reasonable' means).
What does your lease say about your responsibility for paying services charges (e.g. cleaning bills) - does it mention a %age of something?
Bearing in mind whatever your lease says, if you think your service charge is not 'reasonable' you can potentially challenge it at a tribunal.
Not 'reasonable' might mean one (or more) of the following...- The cleaning cost is excessive for the number of hours the cleaners spend in your block
- The cleaning cost is unfairly broken down between blocks
- Other similar blocks nearby pay much less for similar cleaning services
The tribunal would consider your arguments, and consider your freeholder's arguments - to decide what is 'reasonable'.
But obviously, it would make sense to attempt to resolve this with your freeholder long before you think about going to a tribunal.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards