Company charging full service charge despite putting all staff on furlough for months

Ptc1988

Hello, we recently received a bill from a company who complete the grounds maintenance on our development and it is for the full amount despite them putting staff on furlough for a couple of months during this period therefore not providing a service. Are they allowed to do this? And can anyone share the link to the appropriate government  guidance on  this?

Many thanks 

[Deleted User]

The government don't issue guidance on grounds maintenance. It's just contract law, so check your contract to see what it says in relation to unavoidable delays or speak directly to them. As long as what is specified in the contract is covered throughout the year, it should be fine.  It might jut mean that a lot of work is condensed into a shorter period.

sweetsand

Ptc1988 said:

Hello, we recently received a bill from a company who complete the grounds maintenance on our development and it is for the full amount despite them putting staff on furlough for a couple of months during this period therefore not providing a service. Are they allowed to do this? And can anyone share the link to the appropriate government  guidance on  this?

Many thanks 

We rent out a few properties and made a mistake of buying an apartment as these are leasehold and service charge that can go up massivley every year - we will sell this soon due to stamp being cutting but back to what you said - service charges inc the lighting, heating for all commual areas, parking enforecement inc what you said and insurance etc, and they will arrange emergency stuff - we all pay for the security guy and lift being servicec etc, small block 5 stories high but charges are high and imo you will ahve to pay the full whack even if the grass and hedges are not being looked after -

jon81uk

There are rules around how service charges can be charged. You should get a statement showing all the costs and how next years fee is worked out. If you don't think the cost is correct then dispute it and ask for receipts showing the gardening taking place etc.
Its a criminal offence if they can't give you the breakdown of charges
https://www.gov.uk/leasehold-property/service-charges-and-other-expenses

onwards&upwards

sweetsand said:

Ptc1988 said:

Hello, we recently received a bill from a company who complete the grounds maintenance on our development and it is for the full amount despite them putting staff on furlough for a couple of months during this period therefore not providing a service. Are they allowed to do this? And can anyone share the link to the appropriate government  guidance on  this?

Many thanks 

We rent out a few properties and made a mistake of buying an apartment as these are leasehold and service charge that can go up massivley every year - we will sell this soon due to stamp being cutting but back to what you said - service charges inc the lighting, heating for all commual areas, parking enforecement inc what you said and insurance etc, and they will arrange emergency stuff - we all pay for the security guy and lift being servicec etc, small block 5 stories high but charges are high and imo you will ahve to pay the full whack even if the grass and hedges are not being looked after -

Sorry, am I missing something, how does this help the OP?

Galloglass

I think the point that is being made is the basis of the arrangement. If the contract with the gardners is direct with the OP, then the OP can challenge it (as indicated by @Deleted_User).

If the gardeners are working for the freeholder, or the head leaseholder or the management company, the means of challenging the cost is a more indirect and difficult as indicated by @jon81uk

I think a lot of leaseholders would agree with the sentiments expressed by @sweetsand about these charges. The whole area of leasehold charges is being investigated and not before time.

daveyjp

There are big differences between leasehold service charges and freehold maintenance charges, OP doesn't state which one applies to their property.

Regardless, it is usual practice for service and maintenance charges to be reviewed annually.  Any savings from this year should be reflected in the charges for next year.

jon81uk

daveyjp said:

There are big differences between leasehold service charges and freehold maintenance charges, OP doesn't state which one applies to their property.

Regardless, it is usual practice for service and maintenance charges to be reviewed annually.  Any savings from this year should be reflected in the charges for next year.

I think it is a legal requirement to review them annually rather than just usual practice https://www.gov.uk/leasehold-property/service-charges-and-other-expenses

daveyjp

jon81uk said:

daveyjp said:

There are big differences between leasehold service charges and freehold maintenance charges, OP doesn't state which one applies to their property.

Regardless, it is usual practice for service and maintenance charges to be reviewed annually.  Any savings from this year should be reflected in the charges for next year.

I think it is a legal requirement to review them annually rather than just usual practice https://www.gov.uk/leasehold-property/service-charges-and-other-expenses

Your link is for leasehold property, which is regulated.  Freehold management charges aren't. 

LeicesterWorker

They normally collect funds to spend them over a yearly budget.
If they have saved money, they will probably reduce the contribution next year.
But I am sure they will add extra costs for covid, like disinfecting areas or PPE costs etc.
Would be interesting to know the outcome.