Service Charges - query

Altior

It's important to note that this lease was a 'screw up' (technical term) and produced as if it was a flat in a block, and not a self contained coach house style property, with my own exterior front door etc. This error was acknowledged when I purchased the property outright by the vendor's (HA) solicitors. My purchase of the balance of the property was completed May 2021.


This is what my conveyancing solicitor wrote in regard to the original 'inaccuracies' of the lease agreement in the process of completion in 2021:

You should note that whilst your current sub-lease has issues with the parking and extent of the property included, as you will be transferred the headlease, these issues will fall away leaving you with a correct title. If you would like to discuss this further then please contact me.

user1977

Can you post the definition of Service Charge?

Altior

.......................................

Altior

................

user1977

Altior said:

.......................................

...and the Specified Proportion?

Altior

........................

eddddy

The relevant expenditure to be included in the Service Provision shall
comprise all expenditure reasonably incurred by the Landlord in connection

with the repair, management, maintenance and provision of services for the

Building (whether pursuant to the provisions of this Lease or of the Head

Lease) and shall include (without prejudice to the generality of the foregoing):

So you have to contribute to the costs connected with  the repair, management, maintenance and provision of services for the Building 

So you need to find a definition of 'the Building' in the lease.

... shall include (without prejudice to the generality of the foregoing):

the costs of and incidental to the performance of the Landlord's

covenants contained in Clause 5.2 (Insure)) and Clause 5.3 (Repair

redecorate renew structure) and Clause 5.4 (Lighting and cleaning Of

Common Parts);

So examples of the costs you have to contribute towards include the things mentioned in clauses 5.2, 5.3, 5.4.

You also need to find a definition of the 'Common Parts' in the lease.

Altior

Many thanks for your input.

As can be seen from the above pic in street view, the 'Building' in this instance what is I'm already responsible for, and have indeed arranged repairs of over the years. So it's just the 'common' areas, ie the little patch of communal forecourt. I agree by strict definition if someone was regularly employed to maintain (sweep/clean) the patch of 'road' under property, and little square private road area where a few neighbours go with their cars (only 3 cars use this), I would need to contribute a small share of that. But a) no contractor has ever touched this for 12 years and not to date, and b) these charges have never been levied ie mentioned to date, in practice.

There's obviously nothing to do with fly tipping or fire safety, repairs and maintenance, or any of the other things that they suddenly seemingly want to levy me for. In fact I did see one of the neighbours clearing a few weeds last year, that had popped up, themselves. I actually park my car outside the front door and don't use this common forecourt or my own car port at all. But can see everything from windows at the rear. 

Even if the 'landlord' did hire contractors to clean it, and the four properties had to share the cost of someone sweeping clean this little patch for half an hour a quarter, it wouldn't cost over £1K a year. I used to run the finance of R&M for a multi million pound business and I could get this done by professionals for less than £200. That's moot at this point however, as nobody is actually doing it! 

I'm guessing this could be a fight as if they are suddenly going to claim this shared patch of road space is maintained by a third party, I'm going to need to see tangible evidence of this activity and liability. 

Altior

Update on this situation, contacted GUHG early this morning, lady took all the information and said there were no service charge specialists available to speak on the phone, and I would get a call back, but nothing today.

I identified another quirk when preparing for the call, there are two different account reference numbers on the same double sided letter from 22/23, ie October last year. The letter from this year has matching reference numbers. 

I'm quite old school, and keep everything in regard to paperwork. I found a letter from my original solicitor that had a number of clarifying questions/requests to the vendor solicitor. Will the premises be clean, how many keys etc. One request is 3. Please provide the service charge information proposed for this property. Answer from Perrins - The property is not required to pay any service charges. Only buildings insurance of £38.40 per annum.

 

eddddy

Altior said:

 3. Please provide the service charge information proposed for this property. Answer from Perrins - The property is not required to pay any service charges. Only buildings insurance of £38.40 per annum.

 

So I assume Perrins is your solicitor.

It sounds like they were reporting on some document(s) they had received. What document were they getting that information from?

For example, was it the lease, or was it the TA7 completed by the seller, or was it the LPE1 completed by the management company?