450% service charge hike on my leasehold flat. Can managing agent just do that?

pthompson

One of the attractions that led me to buy the leasehold of my flat 3 years ago was the relatively low service charge.  
Today the managing agent has unexpectedly told me that it's too little -- and will be raising it from £200 to £912.   Apparently this is to bring it more into line with what the other leaseholders in the block pay (my flat is unique in the block; it has no shared areas and has its own front door to the street).
This has come as quite a shock; can the managing agent just suddenly hike the service charge by 450%?
Thanks.

Unicorn_cottage

Lessons learnt? Never buy leasehold.

steampowered

Carefully read your lease to determine what it says about service charges.

bouicca21

Your lease should tell you what proportion is allocated to your flat.  The managing agent can’t just change it, so the question is how have they  been calculating it in the past And did they do it correctly.

pthompson

Unicorn_cottage said:

Lessons learnt? Never buy leasehold.

Thanks, but try buying a freehold in London ;-)

AdrianC

Read your lease, and read the service charge accounts.

hazyjo

What do you mean by "buy the leasehold of my flat"?

Is this an ex local authority property?

mattyprice4004

Unicorn_cottage said:

Lessons learnt? Never buy leasehold.

That's not really an option with flats - most are leasehold.

eddddy

Usually a lease will specify what percentage or proportion of the total service you have to pay.

But sometimes a lease will just say that each leaseholder must pay a ‘fair’ or ‘just’ proportion of the service charge. If your lease says something like that, ask the managing agent on what basis they are adjusting your proportion of the service charge. For example, is it on the advice of an RICS surveyor?

Then, if you want, you can tell the managing agent that you will only pay the adjusted proportion under protest, and you intend to challenge it at a tribunal.

ARH_2

Perhaps you could dig out the documents your solicitor would have shared with you when you bought the flat, and share with us sections relevant to the calculation of the service charge? 

If this is vague (e.g. saying something like 'fair' or 'reasonable') then you should be asking for the change to be justified. 

On paying under protest, this is a risky move. Really you should work out what you owe and pay that. If the other side doesn't agree they will try to convince you of their point of view and/or take legal action. Paying under protest and then trying to recoup that payment puts the effort (and cost) required to make it happen with you.  

Slithery

ARH_2 said:

On paying under protest, this is a risky move.

Not as risky as not paying the full amount and then trying to reclaim as the late costs will continue to build up.