Is the Small Claims Mediation Service able to deal with Leasehold Service Charge disputes?

leafy211

Ive been incorrectly charged for service charges for the last 5 years (charges in direct contradiction to my lease) and I wondered if the Small Claims Mediation Service can help with this sort of thing?  My correct annual service charges should be around £150. I have been sent the annual accounts invoices from the managing agents, so will have accurate figures, but roughly I will be owed around £400 overpayment/overcharging, which Id like sorting so I have a clean service charge account.  It's a relatively small amount as far as court cases and costs are concerned, hence me looking for a cheap/free method of mediation/resolution.  The Directors of the Freehold are very aware of the fact they are charging me incorrectly, but have not been willing to correct it.  They have said to my face, that when I eventually sell my flat the matter will resolve itself!  Im in a two building compound of which I am in a separate  building of 2 flats, and we have a different lease to the other 24 apartments in the big block. If not the Small Claims Mediation Service, any other free/cheap methods to recommend would be most welcome.

princeofpounds

What do you mean exactly by overcharged? Service charges don't necessarily have to equal expenditure in any given year.

I assume you mean it was apportioned incorrectly? That is a more straightforward matter perhaps.

If it is so clear cut, then the simplest thing to do is to use the overpayment as credit for the next demand. 

Not sure about small claims, but most leasehold matters are directed to the First Tier Tribunal, which is not cheap (as most people require legal representation).

Leasehold Advisory Service may know the answer.

If you are in a separate building with another flat, you may be eligible to set up a separate RTM or collective enfranchisement. Possibly you won't be eligible given there already appears to be a share-of-freehold situation. But just FYI.

leafy211

Hi PoP.  Apportioned incorrectly is correct, which has culminated in me being overcharged.  Ive taken (free) legal advice on it from a couple of leasehold solicitors, who both confirm I am correct. 
The Directors, however, are not acknowledging that they have charged me for items that are explicitly prohibited in my lease (eg heating in the other building etc), so no credit showing on my account sadly. 
Yes its a share of freehold situation.  Plus the elderly chap above me wouldnt be the right person to go into something like a freehold buyout. 
FTT isnt cheap, and nor is mediation for that matter. In addition it seems like the Freehold company would never be liable for any fees or costs for all their wrong-doings, unless I go for a full-blown court case.  Which seems very heavy-handed over £400 worth of pig-ignorance from the Directors.  Hence me hoping to hear about other options.

NameUnavailable

First Tier Tribunal is the legal route you would need to take, however it should I hope be something you can sort out directly especially given that you own a share of the freehold.

You say that the directors know the charges are incorrect? Have you got anything in writing?

I would write to the freehold company (assuming it's a company) stating clearly the amounts that are incorrect and backing that up by quoting your lease etc. Demand that it is credited out (if you haven't already paid) or state that you will offset future charges against the balance until cleared.

leafy211

Hi - okey dokey so FTT is the legal route to follow.  Unfortunately the two elected Directors of the Freehold company think and behave as if they are untouchable - which is reality they are, as any legal fees are paid for by service charges (as is their liability insurance etc).  I do have bits and bobs in emails over the years,  where they have chopped and changed what amounts the are demanding against which budget code etc, when I point out the errors in my service charge demand.   But then the next service charge invoice reverts back to an old calculation for one item and a completely different one for another budget item.  Crazy!  And most recently I received an email, which didnt deny I shouldnt be contributing to the electricity costs of the other building, but stated that they arent going to try and apportion the costs logically from the electricity bill (Ive provided them with the maths, being extremely generous to them in my intelligent estimates).  So effectively my touch luck.  
Its a power game to them unfortunately.
But I will try again with a complete document of what i should have been charged and how it fits with my lease.  And then if all else fails, Ill use the same documents for FTT.  
My fear is, even if the FTT found in my favour (which is 99.99999% positive), that these guys will do the same again another time.  That's the level at which these guys behave ..  Boo!
Thanks so much though for confirming FTT is the appropriate body.  Wish me luck! :-)
take care