Can I ask for interest on money returned to me from service charge?

Baker2023

I got told last year that my building needed new windows (it doesn’t but the building management said that they have a 25-30 year cycle and were due to be done). As it turns out they didn’t end up doing the windows but the cost was added to my service charge so I have paid them £1,400 for the windows over the past year. They had said that if the windows are not done but end of March, the money will be given back to me. Can I legally ask for interest? This money could have been in a bank earning interest but they took it and then decided they weren’t going to do the windows this year after all.

MattMattMattUK

Baker2023 said:

I got told last year that my building needed new windows (it doesn’t but the building management said that they have a 25-30 year cycle and were due to be done). As it turns out they didn’t end up doing the windows but the cost was added to my service charge so I have paid them £1,400 for the windows over the past year. They had said that if the windows are not done but end of March, the money will be given back to me. Can I legally ask for interest? This money could have been in a bank earning interest but they took it and then decided they weren’t going to do the windows this year after all.

I am not sure what you mean by "legally ask", if you mean "force them to pay interest" then no, if you mean "ask" then you can ask for anything, but they have no requirement to agree or comply. 

As this relates to a service charge it is contractual, as per your leasehold, any interest payable would be detailed in that lease.

mark_cycling00

Is it run through a LTD company? If so, any interest might be taxable income to the company and it might not be as simple as giving it to leaseholders. The incorporation docs may guide what should happen to any income made.

Talking of legal. If building regs or guidance from the manufacturer of your windows says replace after 25 years then maybe you are legally bound to replace them?
If one falls out and kills someone below, maybe the freeholder becomes responsible if they didn't follow the guidance, or you might be successfully sued.

daveyjp

The interest should be included in the accounts for last year and be offset against the service charge for next year.

user1977

daveyjp said:

The interest should be included in the accounts for last year and be offset against the service charge for next year.

And it's going to be peanuts anyway. The admin involved in apportioning it to individual leaseholders is probably going to outweigh the sums involved.

Jonboy_1984

If it’s in a corporate current account then there is probably zero interest paid on it.

sheramber

Jonboy_1984 said:

If it’s in a corporate current account then there is probably zero interest paid on it.

I think the OP meant  that he could have had interest on the money if left in his account, rather than paying  it  to them

theartfullodger

You can ask.  I can ask B Johnson to apologise for #10 breaking the law and his mismanagement (or no management) of Covid - but probably won't get anywhere 

NameUnavailable

Good luck trying to get that!