New Build house site service charge

Mercural100

Hi. I bought a house on a new development about 10 years ago. It's a freehold property, but there is a service charge for the site maintenance. Initially all went well. However, over the years the management company has changed at least 3 times, and they stopped communicating, i.e. I wasn't sent any correspondence at all, no breakdown of service charge (as the first management company did) no invoices, no details of the following years charges, and most importantly, no communication of the change of management company (at least twice).

However, recently I received a letter from a debt collection agency that stated that I now owe a (fairly) large amount of money that they'll be seeking to recover.

Now, I'm not disputing that I haven't paid a service charge for a while, but I (foolishly) assumed my lack of invoices was due to the local council taking the development under its management - as had been said might happen by the selling agent when we first purchased.

My question is, should I have been sent details of when the management company changed? Also, Does anyone have any experience of not receiving a service charge invoice for a period, and how they dealt with it?

Any help in understanding the legalities would be appreciated.

eddddy

Are these the type of issues that you're concerned about?

• The letter may be a scam that hasn't really come from the real management company or their debt collectors?

• And/or you've been charged late fees - which you don't think are payable because you don't think invoices were ever sent?

• And/or you are unhappy with just paying the amount asked for - because there are no cost breakdown details?

• Or is it that you're angry because you've been presented with a big bill in one go?

If any of those issues apply, you should contact the management company and tell them.


You will have signed a service charge deed with the management company or freeholder when you bought the property. Does it say that you should receive an invoice each year, and/or say that you should be notified if the management company changes? If so, you can remind the management company of that.

Even if the deed doesn't say that, you can have a discussion with the management company and suggest that annual invoices, and notifications of changes of management company would be a good idea - and see what they say. 



Edit to add...

Is your service charge collected as a rent charge? If so, that might be a greater cause for concern.

[Deleted User]

Can't really claim you didn't pay if you never had any invoices.

One thing you could do is ask the debt collection for the contract or copies of the invoices. You can do a Data Subject Access Request 

Brie

I always find it bizarre that bills/statements/invoices are not received (possibly because they were never sent) and that after a long period a debt collection co thinks it can demand you pay money.

If it's related to a property then whoever wanted you to pay the service charges etc knew where you lived.  And if one letter from them went missing surely they would follow that up a couple of times.  And the same again the following year.  Possibly sending something recorded delivery so they would have proof that they tried to get the money from you.  And then when nothing happened they could pass it to a debt collection co.  

I suspect someone will say I'm naïve and don't know how business works.  But I do know that there should be some logical progression that would land you with a very very large bill or in court.  At least that's what I would be telling the judge should things go that far!

YoungBlueEyes

You'd think so, but ours don't.

Our service charge is due twice a year. Talking to my near neighbours the other week they said they'd just received a huge bill from a debt collection agency because they hadn't paid for nearly 6 years. The ManCo had changed hands a few times and the newest folks didn't send invoices so my neighbour didn't pay anything. Then they got the debt collector's bill and had to find a bunch of money all in one go. 

I didn't receive an invoice, but because I'm an avid reader here (and the rent charge stuff would put the fear of god up anyone! Not that mine is a rent charge but still)  I decided to just send them the same I'd paid previously (it's due in Jan + July). They wasted no time at all sending me letter telling me it'd gone up £8. 

So if they know where we are for underpayments/debt collectors, why can't they send us invoices??

Maybe I'm also naive and don't know how business works.....