How are flats maintenance charge calculated?

matty_hunt

Hi. Talking to some leaseholders a question arose as to how a management company determine how much annual service charge each flat pays. Given a converted house, each of the five flats is different in size. Some one bed, some two bed, one has a garden, others their own front door, others communal stairwell, etc. Is it normal to calculate each flats charge on m2, rateable value, market value, equal division?
Any input appreciated. Thanks

davidmcn

They'll apportion it by whatever method the leases specify. Any of the above methods are possible, though unless flats are vastly different I would have thought equal division is most common. Plus other permutations eg costs for any lift only split among the upstairs flats.

Do you have a particular problem in mind?

G_M

It should be specified in each lease.


It may be shared eqully between flats, based on number of bedrooms, square footage, or some other method.

matty_hunt

Thanks for replies.
Its renewal of the lease that has raised the concern. It is not in the original lease but solicitor says under latest legislation it should be included. It is currently on rateable value @1996 but two dingy flats pay only 5% each less than a flat twice the size that has garden and is much nicer. Naturally the owner of the smaller flats is moaning but its finding an amicable way forward. I wondered if there was a more accepted method of proportioning the charge. Thanks

G_M

Are all the leases being renewed?


Who is the freeholder? Jointly owned by the leaseholders or a separate person/company?

eddddy

matty_hunt wrote: »

I wondered if there was a more accepted method of proportioning the charge. Thanks

You're looking at this from the wrong perspective.

When you buy a flat, you are buying what it says in the lease.

So, for example, if the lease says you have to pay 25% of building maintenance, and you don't like that, your options include:

• Offering less for the flat because of the maintenance terms in the lease

• Decide not to buy the flat because of the maintenance terms in the lease

It's not really realistic to buy a lease on a flat, then decide you don't like lease you've bought and want it changed.

matty_hunt wrote: »

It is not in the original lease but solicitor says under latest legislation it should be included. It is currently on rateable value @1996 but two dingy flats pay only 5% each less than a flat twice the size that has garden and is much nicer.

I suspect the leaseholders are confused, and are misquoting / misinterpreting the solicitor's comments.