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management company never finalised accounts = high retention
CharVIW
Posts: 1 Newbie
Hi!
I was wondering if anyone on here can advise on this.
My husband and I just sold our leasehold flat in Kent and were initially asked for a retainer of £250 for any fees that may occur. We agreed as it all seemed pretty standard. However they found out the management company has NEVER finalised their accounts (building has been there about 7 years, we had lived in it for about 4.5 years, so not from new). So as the accounts have not been finalised for so long, the buyers solicitor requested that this had to be increased to £3000!
We felt like this is a lot of money, and for something that isn't our fault. We paid all our service charges in good faith expecting these administration tasks, such as finalising accounts, should be included as part of their job, which they haven't done.
My main questions to the MSE community on this are:
1. Does anyone else think a £3000 retainer is excessively high? Sorry if this seems usual to some people and we have been naive.
2. Do you know if it is legal for companies to not finalise their accounts for so long, how can this be possible, when they have to do tax returns and submit information to companies house!? surely these aren't accurate reports they are submitting?
3. Can we complain to a regulatory body? I have been advised the property ombudsman but can they do anything?
If anyone has anything else in addition to these questions that might be useful to know of, I would be interested! Thanks
I was wondering if anyone on here can advise on this.
My husband and I just sold our leasehold flat in Kent and were initially asked for a retainer of £250 for any fees that may occur. We agreed as it all seemed pretty standard. However they found out the management company has NEVER finalised their accounts (building has been there about 7 years, we had lived in it for about 4.5 years, so not from new). So as the accounts have not been finalised for so long, the buyers solicitor requested that this had to be increased to £3000!
We felt like this is a lot of money, and for something that isn't our fault. We paid all our service charges in good faith expecting these administration tasks, such as finalising accounts, should be included as part of their job, which they haven't done.
My main questions to the MSE community on this are:
1. Does anyone else think a £3000 retainer is excessively high? Sorry if this seems usual to some people and we have been naive.
2. Do you know if it is legal for companies to not finalise their accounts for so long, how can this be possible, when they have to do tax returns and submit information to companies house!? surely these aren't accurate reports they are submitting?
3. Can we complain to a regulatory body? I have been advised the property ombudsman but can they do anything?
If anyone has anything else in addition to these questions that might be useful to know of, I would be interested! Thanks
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