Misinformed about service charge :(

bouicca21

If I were sell ing my flat and a possible buyer asked me what the service charge was, I'd say '£1200'. I'd actually have to get the file out to be absolutely sure. I'd expect the possible buyer to understand that is a ballpark figure, not a strictly accurate one.



It would not be a lie, even though sometimes it is a bit less and sometimes a bit more. And it is obvious that it will be a lot more when the freeholder decides to redecorate the communal area and the outside of the building. I won't be complaining about the increase, as both are looking a bit shabby, and I shall be pleased to pay extra to get it looking smarter.


The question is not so much about the size of the service charge, but whether it is reasonable for the maintenance that is required and carried out. If you want to live in a place with a gym and swimming pool on site then expect to pay for having it maintained - you don't want to be swimming in a pool full of dirty water or exercising in a gym full of broken equipement, do you?



OP you do understand that any repair/maintenance works requiring expenditure over and above £250 per leaseholder requires a special consultation process, don't you?



Though TBH I think OP's understanding of leasehold arrangements and the function of an EA is so poor that he/she is best looking for a freehold.

need_an_answer

OP why are you not buying a freehold property with no service charge?

ilikepancakes

SallyDucati wrote: »

When I sold my flat last year the service charge was £1,200/year. This year it has apparently increased to £1,440 so a 20% increase. Are you saying the guy who bought my flat has a claim against me or my estate agent?

Service charges change, and can go down as well as up.

It seems like you are taking this personally. You've made your decision to go with it now, accept the charge and move on with the purchase/your life.

I wrote it before: I wouldn't mine if the service charge changed in the meantime but I have all the accounts now and I can see it was £2400 since 2016.
It won't hurt me this £33 a month but I feel fooled. It is difficult to say now but I think that I would offer £250k instead of £255 if I only knew the service charge is £2400 and I think £250k would be eventually accepted.

bouicca21 wrote: »

If I were sell ing my flat and a possible buyer asked me what the service charge was, I'd say '£1200'. I'd actually have to get the file out to be absolutely sure. I'd expect the possible buyer to understand that is a ballpark figure, not a strictly accurate one.

No, it is not a ballpark figure. Is it that difficult to check how much you pay every 6 months?

I would say £2400 is more or less reasonable but the thing is, there were/are around 5-7 flats for sale in this area. All of them are veeery similar, similar layout etc. Some of them have £1600 service charge, some of them £2600 depends on the building and works the building needed. And now you have to chose which one you want; we chose this one because we liked it and also because service charge was on the lower end.

Now it turns out it is on the higher end and if I knew that I would consider different flat in the same area.

I am saving £1000 - £1600 per month so I can afford service charge even if it's £4k per year. But if it has to go up by £1000 I prefer it goes up from £2000, not £2400!

need_an_answer wrote: »

OP why are you not buying a freehold property with no service charge?

Because there not a lot in my area, if there are any we dont like them or they are in bad neighbourhood.
I do not have any problem with paying service charge.
I have a problem with being provided incorrect data that had influence on my decision to make an offer.

need_an_answer

So save until you can afford a freehold property in the area of your choice....

There was nothing stopping you not making an offer on this current property until you had researched the "correct data" from the management company rather than relying on possible incorrect information from other sources.

Whilst it would be seen as an unusual request I understand that a management company cant deny anyone information about the level of a service charge for a property.

SallyAnneBooth

It won't hurt me this £33 a month but I feel fooled. It is difficult to say now but I think that I would offer £250k instead of £255 if I only knew the service charge is £2400 and I think £250k would be eventually accepted.

Stop pratting about and offer the £250k then, gawd almighty!

davidmcn

need_an_answer wrote: »

Whilst it would be seen as an unusual request I understand that a management company can't deny anyone information about the level of a service charge for a property.

On what basis would any random third party have the right to this information? It would generally be confidential to the current leaseholders.

need_an_answer

davidmcn wrote: »

On what basis would any random third party have the right to this information? It would generally be confidential to the current leaseholders.

As a potential leaseholder I have managed to obtain a ballpark figure on a service charge from at least 3 separate management companies in the past...

it hasn't been seen as a confidential enquiry.


One of the management companies was a national and 2 were reasonably local to the complexes involved.

I've had no problems obtaining the information via email after stating my purpose

I went on to purchase all 3 properties.

davidmcn

need_an_answer wrote: »

I've had no problems obtaining the information via email after stating my purpose

Ok, but I can't see on what basis you would have a right to get the information.

ilikepancakes

davidmcn wrote: »

I think you're not taking the point which several of us have made, i.e. the service charge is variable, so the current exact figure only really means anything today, it's not the amount you'll be paying "for the rest of your life". Even if it were currently £2000, it could increase shortly after you complete the purchase. Next year it could be £3000. Or it might come back down to £2000.

Yes it is for the rest of my life as if there is increase of £1000 for roof works, then it is increase from £2400 and not from £2000. If there is decrease of some amount because of something, then again, it is decrease from £2400, not £2000.

need_an_answer wrote: »

So save until you can afford a freehold property in the area of your choice....

There was nothing stopping you not making an offer on this current property until you had researched the "correct data" from the management company rather than relying on possible incorrect information from other sources.

Whilst it would be seen as an unusual request I understand that a management company cant deny anyone information about the level of a service charge for a property.

Wait, I have "researched" what's the service charge by asking the EA and I don't think EA is "other source", why would i presume that they are not providing me with correct figure?

Sure, it was mistake but does it mean anything they said to me about the flat was not true?
They made the mistake and they should be responsible for any outcome this mistake lead to, even if it make the buyer pulling out.

But after reading MSE forum I'm a docile dog now and I will say nothing and happily pay £33/month more for god knows how many years.

need_an_answer

but why should a management company deny the information if asked for with reasonable intent?

its not confidential information.