Admin fees

catblack1974

I live in a leasehold apartment and the maintenance provider have suddenly told me that they are charging me a fee to set up a service charge instalment plan. I haven't been charged prior to now (they say this was their error) but they have never provided me with their charging policy and schedule of fees despite me asking for this several times.  Can they just add on admin fees willy nilly?

theartfullodger

Are any such fees described or possibly described in lease,. Sorry but can't read it from here

Browntoa

If you own the flat then it should have been supplied to your solicitor during purchase as far as I remember 

eddddy

It depends on whether the monthly installment option is something offered in the lease - or a completely separate 'service' offered by your management company.


Often, the set-up is as follows:

• The lease says the service charge must be paid one a year or twice a year.

• The management company offer a separate service (not part of the lease) allowing you to pay by monthly installments

If it's not part of the lease, none of the normal leaseholder protection would apply. So there's no requirement for the charge to be 'reasonable' etc.


BUT... my understanding is that if a company offers payment by installments (e.g. 12 monthly payments) AND they charge an admin fee, they have to be authorised by the Financial Conduct Authority.
See: https://www.fca.org.uk/firms/authorisation/when-required/exemptions-exclusions/installment-credit

So I suspect that if you kick-up a fuss, they'll stop offering a monthly payment option.


Or does your lease mention the installment option?

canaldumidi

As above, how (often) does the lease say the service charge must be paid. Have a read and if it's still not clear, quote it here in full and we'll try to advise.

But pointless for us to guess.