Service Maintenance Charges on New Builds

phoenixinn1702

I have just moved into a new build flat and I was given a total for the first years service charge by the company I purchased the property from and they and their solicitors told me this would be the total for the first years service charge to be paid up front - they even sent me a costing which shows what I had to pay and a breakdown of the costs. This was dated on my completion statement showing once paid I had paid the charge until 1 May 2025. 

Having had the keys less than 2 weeks I have now been sent a demand for additional payment I have already paid the full years service charge up front in my view. Now they want more money and have not even told me what its for just that they want another £200 off me ASAP. The management company are newly appointed as the previous one
they has planned to use is no longer operational. It looks to me as of the new company have come in and just changed the budget for the first year after the bills already been paid in full. I have rang them and explained all this and provided paperwork to prove what I am saying is correct - but they are still asking for payment. 

I expected the service charge to go up year on year but 2 weeks in - the management company have not even taken over the running of the building yet and are not doing so until all snagging has been completed. 

Can anyone with better knowledge on this subject tell me do I have pay this charge? 

Just seems wrong they can just send a demand for payment without even telling me why. 



 

eddddy

phoenixinn1702 said:

I have just moved into a new build flat and I was given a total for the first years service charge by the company I purchased the property from and they and their solicitors told me this would be the total for the first years service charge to be paid up front - they even sent me a costing which shows what I had to pay and a breakdown of the costs. This was dated on my completion statement showing once paid I had paid the charge until 1 May 2025. 

Having had the keys less than 2 weeks I have now been sent a demand for additional payment I have already paid the full years service charge up front in my view. Now they want more money and have not even told me what its for just that they want another £200 off me ASAP. The management company are newly appointed as the previous one
they has planned to use is no longer operational. It looks to me as of the new company have come in and just changed the budget for the first year after the bills already been paid in full. I have rang them and explained all this and provided paperwork to prove what I am saying is correct - but they are still asking for payment. 

I expected the service charge to go up year on year but 2 weeks in - the management company have not even taken over the running of the building yet and are not doing so until all snagging has been completed. 

Can anyone with better knowledge on this subject tell me do I have pay this charge? 

Just seems wrong they can just send a demand for payment without even telling me why. 

(It's better to start a new thread with a completely new question.)

The situation is probably as follows:

• You have to pay an estimated service charge for the year in advance.

• (It's a bit like paying an estimated electricity bill for the year in advance. At the end of the year, the actual bill could turn out to be higher or lower than the estimate you paid.)

• Your lease should say when (which date each year) you have to pay the estimated amount

Whether the extra £200 is payable in your case depends on a number of factors, including:

• What exactly you (or your solicitor) were told about the first year's service charge

• Whether the extra £200 was correctly demanded according to the terms of the lease

• Whether the estimated service charge, including the extra £200, is 'reasonable'. (That means 'reasonable' in the legal sense.)

But you can also look at it this way...

• If you pay the extra £200, and it turns out that some/all of it isn't used - you'll get a rebate at the end of the year

• If you don't pay the extra £200, and it turns out that money was needed - you'll have to pay it at the end of the year anyway.

But more importantly, it's very risky not to pay a service charge demand - unless you are 100% sure you would win a case at a tribunal.

If you don't pay the £200, most management companies/freeholders would start adding late fees, solicitors fees, debt collectors fees, etc. That could easily add hundreds (if not thousands) of pounds to your bill.

eurobabe

With these management the residents usually have the chance to become a resident director if the company.that entails attendance Ng a yearly AGM to talk about the service charges and thought the year you're the point if contact with management company for the residents regarding costs.you getting input from residents point if viewing about costs and what thing the residents should be paying for.that doesn't mean however that you can pay nothing as the site needs to be maintained and managing agent paid.Im a residential director for the residents on the site I pay towards.i was also responsible for changing our management company when they're contract expired and got a better and cheaper one in savings a fair bit off the costs 

eurobabe

You should also be getting a breakdown of how the charges are made up that you pay each year when they send through the invoice.You could also ask for a plan of the site showing which areas they maintain that you pay for.then check areas are actually being marked stained.Be careful though being too critical of the areas maintained as managing agent may add a string if new works which they are currently required to do to the list that residents need to then pay for. Also make sure you pay on time as that can affect you credit history if the late payment progresses too far.It also means the fund are there for the company to maintain the site