Shared ownership maintenance costs

itsthelittlethings

I am a shared owner with a large housing association. We had a notice saying that they were going to redecorate communal areas. The majority of flats are housing association/ council so will not be directly paying towards these works I assume.

The letter said they had a figure of £70,000 for the work, and that my share came to £700. There are 20 flats in our block. My initial reaction was that £70,000 is a large amount for this work. However I was happy to contribute £700. I was minded to ask them if they had got three quotes but I did not.

The work was done in springtime this year. They told us we would be charged in September and have a year after that to pay. In September we had a letter saying it would be September 24 when we were told what to pay (obviously they don’t know the exact final figure).

I have the money saved up to pay but my concern is that £700 is not 1/20th of £70,000. I don’t really feel I can say much if they come back and say they worked out our proportion of costs incorrectly as I feel I should have queried this at the time.

Any advice?

subjecttocontract

Wait until the bill arrives. They must be decorating 5 blocks of 20 flats for the £70k. 

fullyrendered

You should have received Section 20 consultation from the HA, did the notices contain further details or explain how you could obtain it?

Brie

How much of a share of the flat do you have?  If you own 20% of your flat then £700 would be correct.  

£70k divided by 20 flats = £3500 per flat.  £3500 x 20% = £700.

itsthelittlethings

I’ve got the initial letter and it says that the rechargeable cost is divided by our individual proportion as per the terms and conditions of (our) lease. There are two or three leases and underleases, I’ve skimmed two of them but can’t find the relevant part.

I own 50%.

eddddy

If you're being asked to pay £700 - the HA should do a process with you called a Section 20 consultation, which usually lasts about 3 months.

You should receive 3 notices.

• The first notice would include an "Intention to do works" - so it should include the scope of the work. e.g. Whether the work relates to 1 block, or to 5 blocks, etc

• The second notice would include the quotes that have been obtained

• The third notice will say which quote has been accepted

Then you might receive the actual Service Charge bill.


You say you have got an "initial letter".

• Is it a bill telling you to pay £700?

• Or is it a letter warning you that a Section 20 consultation will start soon? (And advance warning about future costs?)

• Or is it the first stage of the Section 20 process - an "Intention to do works"? (And advance warning about future costs?)

(Have you bought the flat recently? i.e. Could the section 20 consultation happened before bought? If so, you should have been told during the buying process.)


Here's a bit more info on Section 20 Consultations: https://www.lease-advice.org/faq/what-is-the-section-20-consultation-process-for-major-works/

itsthelittlethings

I got an initial letter which mentioned a section 20 contained within, a breakdown of the costs, explaining how and when we’d have to pay and an invitation to comment. I moved in 6 years ago, so I doubt I missed anything.

itsthelittlethings

We may have had 3 stages actually.

Puddings

You must be billed within 18 months of the work being completed otherwise the bill is not payable! Our HA billed us way after this time for roof replacement that should have been c£2,500 per flat, they were not able to recoup this money from us - of course they charge us ridiculous amounts elsewhere so will be sneakily regaining their cost.. 

The majority of this cost should come from the sinking fund with the remainder paid by leaseholders. It usually doesn't matter how much of the flat you own, you're liable for 100% of costs. 

itsthelittlethings

Getting conflicting advice here.

itsthelittlethings

Update: still no bill.