Mgmnt Co charge for providing Statement to solicitors

PawelK

Hello.

I am hoping others that have remortgaged recently or are part of the process (conveyancers or management company agents) can confirm if this is a standard fee...

Received final summary of my remortgage numbers and amongst other costs such as Chaps wire and redemption fee, £72+VAT fee from my Management company. I asked conveyancers to provide me a copy of the document received and all it was (apart from what I assume would be a short cover letter), was a very simple one page of my service charge statement (that looks like being in an excel format). I already know my mgmnt co is useless and on one hand I'm not surprised. On another though, I wonder how would they justify almost £80 for one, two pages that can be printed off by an office admin and sent by email in few minutes. Cost of running the business? I don't think so...
I also don't think there is any way of challenging this as I guess the fee is fixed price applied to everyone and even if I could complaint about it I don't want for my remortgage to get delayed (completion date 1st November).

dunstonh

On another though, I wonder how would they justify almost £80 for one, two pages that can be printed off by an office admin and sent by email in few minutes. Cost of running the business? I don't think so...

If its that easy, why are you not doing it?

I also don't think there is any way of challenging this as I guess the fee is fixed price applied to everyone and even if I could complaint about it I don't want for my remortgage to get delayed (completion date 1st November).

If they have their tariff and you employ them on that basis then there is nothing to challenge.  You are free to select the companies you deal with.

PawelK

Sorry, not sure if I wasn't clear enough or misinterpreted your reply. I can't really choose management company, living in a block of flats, can I? Their tariff is what I need to pay via solicitors.

simon_or

PawelK said:

Hello.

I am hoping others that have remortgaged recently or are part of the process (conveyancers or management company agents) can confirm if this is a standard fee...

Received final summary of my remortgage numbers and amongst other costs such as Chaps wire and redemption fee, £72+VAT fee from my Management company. I asked conveyancers to provide me a copy of the document received and all it was (apart from what I assume would be a short cover letter), was a very simple one page of my service charge statement (that looks like being in an excel format). I already know my mgmnt co is useless and on one hand I'm not surprised. On another though, I wonder how would they justify almost £80 for one, two pages that can be printed off by an office admin and sent by email in few minutes. Cost of running the business? I don't think so...
I also don't think there is any way of challenging this as I guess the fee is fixed price applied to everyone and even if I could complaint about it I don't want for my remortgage to get delayed (completion date 1st November).

As someone who's owned leasehold flats, in practice there's not much you can do I'm afraid unless you're willing to go through the trouble and effort of taking them to the tribunal.

The fee you've quoted would fall under 'Administration charges' and the law requires that they should be 'reasonable', and allows the leaseholder to challenge them by applying to the tribunal for a decision if you do not believe they are fair.

Edi81

Nothing you can do. 

I’m selling my leasehold and have had to shell out a total of £500 for management company and ground rent things. 

Will be glad to own a freehold (hopefully soon!). 

eddddy

The law says that Leasehold Administration Charges must be 'reasonable'. (The charge you describe would be an Administration Charge.)

In past cases, tribunals seemed to accept that £50+vat per hour was a 'reasonable' rate for Admin tasks (although that was a few years ago).

So if it took an Admin person at your management co about 1 to 1.5 hours to deal with the request, a tribunal would probably say that's 'reasonable'. (That includes everything from reading your solicitor's email/letter through to writing a covering letter in reply.)


The law allows you to challenge this fee at a tribunal - as long as your solicitor didn't say they agreed to the fee. But for the amount involved, it's probably not worth it.

dunstonh

PawelK said:

Sorry, not sure if I wasn't clear enough or misinterpreted your reply. I can't really choose management company, living in a block of flats, can I? Their tariff is what I need to pay via solicitors.

I did misinterpret you. I thought you were talking about a letting management company with you being the owner.

In which case, I sympathise with you as some leasehold management companies are atrocious.

MattMattMattUK

dunstonh said:

PawelK said:

Sorry, not sure if I wasn't clear enough or misinterpreted your reply. I can't really choose management company, living in a block of flats, can I? Their tariff is what I need to pay via solicitors.

I did misinterpret you. I thought you were talking about a letting management company with you being the owner.

In which case, I sympathise with you as some leasehold management companies are atrocious.

Unfortunately from personal experience, as well as that of friends and family I would view some as being incredibly generous, with the more accurate level being equal to, or only slightly less than all.