Freeholder and Management company misery

Lillibet1982

I feel like I’m going around in circles with the freeholder and property management company of my flat.

I was told on Friday that after they finally started work on my external wall to repair the cracks that the building is now unsafe, and I won’t be able to move back in until at least the end of January. Not the best of timing with Christmas 8 days away and trying to find somewhere to stay! 

I raised concerns to Plymouth block management company and the freeholder, G&O Rents back in August 2021 that the walls were unsafe, yet they were ignored, and it was only when all the wall ties had perished and there was no outer wall physically touching one of my bedroom windows that they decided to finally send another structural surveyor. This was in October 2023. It’s still taken 3 months of begging them to get someone to do the work and my mental health has suffered with the fear the wall might collapse.

My lease states the Freeholder is responsible for the external walls but due to them doing nothing, I’m going to be forced to pay thousands of pounds to have the whole wall rebuilt and steels put in when the work should have been carried out at a much cheaper price two years ago.

I’m also charged £650 a year for buildings insurance for a 2 bed flat??? My mum’s 3 bed house is only £180 a year?? The two flats on the lower floor also pay another £300 each so that’s £1,250??? but despite me paying money for solicitors to write letters to the freeholder, they never ever bother to reply. I’ve been on minimum wage for the last 6 years and spending £800 on solicitors’ fees was a big thing for me, especially when I got nothing in return. 

(I haven’t paid it as I think it’s horrendous)

The property management company keep charging me for things that I’ve never seen any proof have happened and work has never been carried by them until now and I’ve never seen anyone at the property sent by them in the last 5 years.  I looked up the accountant they use, and it said that company was dissolved in 2020?? Can they still provide accounts?!

Any advice would be amazing as I'm so worried.

eddddy

Lillibet1982 said:

...I’m going to be forced to pay thousands of pounds to have the whole wall rebuilt and steels put in when the work should have been carried out at a much cheaper price two years ago.

You could challenge the Service Charge bill at tribunal, arguing that it isn't reasonable.

Your argument would be what you've said here....

• You reported the problems in 2021 and if the the freeholder had addressed them then, it would have only cost £x. But the freeholder did nothing and the problems got worse, so the cost has increased to £y.

• So it's reasonable that you only contribute towards £x.

• But the problem is that the freeholder will be arguing the opposite, and they might have their surveyor's reports etc which support their argument.

• So you might need your surveyor's reports etc to support your argument.

What do the other leaseholders in the block think about this?  For example, could a group of you team up to challenge the freeholder?

Lillibet1982

eddddy said:

Lillibet1982 said:

...I’m going to be forced to pay thousands of pounds to have the whole wall rebuilt and steels put in when the work should have been carried out at a much cheaper price two years ago.

You could challenge the Service Charge bill at tribunal, arguing that it isn't reasonable.

Your argument would be what you've said here....

• You reported the problems in 2021 and if the the freeholder had addressed them then, it would have only cost £x. But the freeholder did nothing and the problems got worse, so the cost has increased to £y.

• So it's reasonable that you only contribute towards £x.

• But the problem is that the freeholder will be arguing the opposite, and they might have their surveyor's reports etc which support their argument.

• So you might need your surveyor's reports etc to support your argument.

What do the other leaseholders in the block think about this?  For example, could a group of you team up to challenge the freeholder?

I have the surveyors reports and advice from my own structural engineer. One of the flats is currently for sale and the other leaseholder isn't interested in challenging anything. I've looked at right to manage and also buying the freehold but the freeholder wanted £3,000 upfront to tell me how much the freehold would cost?? I couldn't afford to waste £3,000 if it turned out too expensive for me to add to the mortgage.

eddddy

Lillibet1982 said

I have the surveyors reports and advice from my own structural engineer. 

So if the surveyor and engineer support your opinion, when you get the Service Charge bill for the work, you can challenge it at a tribunal.

It costs £100 to go to tribunal, and you usually get that back if you win the case.

It might be enough to just submit the reports you already have as evidence. But if you want the surveyor / engineer to turn up at the tribunal to argue your case, obviously you'll have to pay them for that.

But TBH, I suspect that the freeholder/management company might put up a very fierce fight.



Here's some info about going to tribunal:  https://www.lease-advice.org/faq/how-do-i-make-an-application-to-the-first-tier-tribunal-property-chamber-for-my-service-charge-to-be-determined/

eddddy

Lillibet1982 said:

... and also buying the freehold but the freeholder wanted £3,000 upfront to tell me how much the freehold would cost?? I couldn't afford to waste £3,000 if it turned out too expensive for me to add to the mortgage.

Just to clarify....

You would be paying the freeholder £3k to suggest a price that the freeholder is willing to accept for the freehold.

In simple terms...

• You've said "How much do you want for the freehold building?"

• The freeholder can reply asking for any price they like.. e.g. £1k, £10k, £100k etc (Or simply say they don't want to sell it.)

• (and it seems the freeholder wants £3k before answering your question)

And the freeholder might start off asking for a stupidly high offer price, and assume that you will come back with much lower counter offers.



But you don't necessarily have to ask the freeholder to make the first offer. You can just dive in with your own offer first - maybe £5k or £10k or £20k or £30k or whatever - and see what the freeholder says. 

penners324

Buildings insurance should be paying for your accommodation whilst the issue is fixed.

user1977

penners324 said:

Buildings insurance should be paying for your accommodation whilst the issue is fixed.

That doesn't seem likely here given that the defect itself isn't one caused by an insured risk. Do you get policies which cover your accommodation while an uninsured defect is fixed?

Lillibet1982

user1977 said:

penners324 said:

Buildings insurance should be paying for your accommodation whilst the issue is fixed.

That doesn't seem likely here given that the defect itself isn't one caused by an insured risk. Do you get policies which cover your accommodation while an uninsured defect is fixed?

Buildings insurance won't cover it as it's classed as wear and tear. 
As they pulled more of the wall down and cut through the floor they found that when the property was converted from a corner shop the lintels weren't supported correctly. Outs a very bodge job done in the 70s I believe