Challenging Service Charge Provider (Private Housing Estate)

NeilCr

AdrianC said:

rich20 said:

I own a leasehold townhouse on a 250+ house housing estate. I currently pay around £500 per year in service charge fees and can't see how the service i'm paying for is benefiting me.

Read your lease. The service charges will be to maintain the common areas of the estate. This is information that should have been taken into account when you purchased the property.

If you think the work detailed in the service charge accounts is not being done, that's a different question.

I'm primarily interested in the simplest route available to reduce my fees. My second ambition would be to replace to service charge provider all together with a more cost effective provider.

It doesn't work like that...
The freeholder appoints an estate manager. This is documented in your lease.
If you buy the freehold, it will still be subject to rentcharges and/or covenants covering the maintenance of the common areas.

I would be really pleased to receive any advise from anyone who has experience and is able to offer assistance in either;
- challenging service charge providers directly on the grounds of the charges being unreasonable
- changing the service provider on a large private housing estate

Your only option would be to look into getting sufficient other residents together to look into right to manage.
https://www.lease-advice.org/advice-guide/right-manage/
However, I don't think this applies to common areas of estates.

I think your only options are going to be...
1. Live with it.
2. Move to somewhere that isn't part of an estate with maintained common areas.

In our case (we are an RMC) we do own the common areas

What I wasn't sure of was whether RTM applies to properties owned by a local authority. Not something I've encountered

Otherwise  - agree entirely with your post

eddddy

rich20 said:

- challenging service charge providers directly on the grounds of the charges being unreasonable

The short answer is that challenging an unreasonable service charge at a tribunal would cost £100 - and if you win, your landlord (e.g. the freeholder) might be ordered to pay that back to you.

BUT you need to be a lot clearer about why you believe the service charge is unreasonable, for example...

1.  You say "[I] can't see how the service i'm paying for is benefiting me." - that's not a legal basis for challenging a service charge. You would lose any tribunal claim made on that basis.

2. You're being charged a service charge for something not stated in your lease. For example, you'r being charged for maintenance of a parking area, and your lease does not require you to pay for that.  As a starting point, point out the relevant clauses in your lease to your landlord (or their agent). Ultimately, in those circumstances, you could challenge those car park maintenance charges at a tribunal.

3. You believe that excessive maintenance and repairs are being done.  For example, the grass is being cut weekly, you believe it would be reasonable to cut it fortnightly, and thus save costs. As a starting point, discuss it with your landlord (or their agent). Ultimately, in those circumstances, you could challenge those grass cutting charges at a tribunal.

4. You believe that contractors are being paid an unreasonably high amount.  For example, you think that a different contractor could cut the grass much more cheaply. As a starting point, discuss it with your landlord (or their agent). Ultimately, in those circumstances, you could challenge those grass cutting charges at a tribunal.

5. The contractors are not doing what they are supposed to.  For example, the grass cutting contractors are doing shoddy work, and/or not turning up when they should. Discuss it with your landlord (or their agent). They may not visit the property, so they might not know that the work isn't being done properly.


It may be that your landlord's agent has their own workforce to do things like cut grass, rather than using independent contractors - but the same options apply.

Unicorn_cottage

Never buy leasehold or a place with service charges. Total and utter rip off! I know because I worked for 1 of these management companies and they are an absolute bunch of crooks.

rich20

Appreciate all the comments and realise I need to be realistic. As an example my service charge is broken into service charge coach house (£390) and service charge estate (£103). 
The coach house service charge includes:
- grounds maintenance
- repairs and maintenance
- refuse

My house has a fenced off back garden which only I access, and my bins are kept in my garage. I understand similar properties on the estate have use of a bin store but my contract doesn't show a bin store allocated for my house. Fair enough I should pay for the upkeep of communal areas, despite having no direct access, but paying an additional  £390 to see no benefit I find annoying. To further add annoyance the hedge backing on to my garden is long overdue a cut. 

eidand

rich20 said:

Appreciate all the comments and realise I need to be realistic. As an example my service charge is broken into service charge coach house (£390) and service charge estate (£103). 
The coach house service charge includes:
- grounds maintenance
- repairs and maintenance
- refuse

My house has a fenced off back garden which only I access, and my bins are kept in my garage. I understand similar properties on the estate have use of a bin store but my contract doesn't show a bin store allocated for my house. Fair enough I should pay for the upkeep of communal areas, despite having no direct access, but paying an additional  £390 to see no benefit I find annoying. To further add annoyance the hedge backing on to my garden is long overdue a cut. 

It's possible they expect you to cut it, but still pay for the service ... I could be wrong though!

AdrianC

rich20 said:

Appreciate all the comments and realise I need to be realistic. As an example my service charge is broken into service charge coach house (£390) and service charge estate (£103). 
The coach house service charge includes:
- grounds maintenance
- repairs and maintenance
- refuse

My house has a fenced off back garden which only I access, and my bins are kept in my garage. I understand similar properties on the estate have use of a bin store but my contract doesn't show a bin store allocated for my house. Fair enough I should pay for the upkeep of communal areas, despite having no direct access, but paying an additional  £390 to see no benefit I find annoying. To further add annoyance the hedge backing on to my garden is long overdue a cut. 

What is the exact wording in your lease about the service charge?
What do last year's service charge accounts say?

rich20

Thanks for all the comments.
Please see below this years service charge and hopefully the right extracts from the lease.
As far as I'm aware every house on the estate the same as ours has access to a bin/cycle store. This isn't detailed in our plan.

D.L

Not an expert, but that seems like a massive management charge (approx. 39%). The council freeholder where I live take 10%. I don't know about legalities sorry but many others in the know here!

rich20

Thanks. Hopefully somebody with more knowledge than me is able to see if I have a valid grievance. 

NeilCr

£170 goes on insurance

That reads as though they provide might house and contents insurance for your house. Is that right?

If so you are down to £320 per annum for everything else which doesn't seem that much and may be difficult to challenge.