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Estate management fees

Apologies - this ended up being a bit longer than I hoped:

We bought our house 15 years ago on a new build estate which is partially unadopted and has some common areas maintained (how I wish I had known back then)
Our house is 100% freehold

We have in the past paid the management fee via monthly standing order via “special” agreement

This period, we were not only surprised to find that the management company has either been taken over or changed name - can they do this without informing the residents ?

They also informed us, in order to continue paying monthly would attract an admin fee of £30 per period (6 months) on top of the ~£200.
Are “they” allowed to just add a random amount for admin or should this be somewhere in writing.

Over the years, they have been a bit hot and cold with dealings and information. This year has been bad as the invoice they claim to have sent in Nov has t been received by at least 5 households which precipitated the recent threatening letter.

My OH spoke to a rather rude,passive aggressive lady yesterday who wasn’t much use and didn’t listen and continued to say we were obligated under the leasehold (again,we are 100% freehold for our property)

Just after a bit of help/reassurance and any ideas if we can get rid of these cowboys? - we did try settings up a residents run management a few years ago, but sadly not enough were interested and not enough people able to
commit the time/resources.

Di we just shut up,put up and pay up?
«1

Comments

  • daveyjp
    daveyjp Posts: 13,343 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Unlike leaseholders there are no specific protections for freeholders subject to management fees.  It's all down to basic contract law.  Management company has agreed to do work, residents have agreed to pay.  

    You need your paperwork to review what you agreed to, but in the meantime I'd cancel the standing order, save the amount monthly and and pay on demand.


  • user1977
    user1977 Posts: 17,292 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper

    This period, we were not only surprised to find that the management company has either been taken over or changed name - can they do this without informing the residents ?
    But in the next paragraph you say that they have informed you? I can't see that it makes a difference anyway, it isn't a personal arrangement you have with one company, it runs under your titles to your house.
  • snowqueen555
    snowqueen555 Posts: 1,557 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The estate fees put me off a purchase last year. You really don't have much power to fight the charges, and they can in effect raise them as much as they wanted if they needed to and you would be on the hook for it.

  • LightFlare
    LightFlare Posts: 1,378 Forumite
    1,000 Posts First Anniversary Name Dropper
    daveyjp said:
    Unlike leaseholders there are no specific protections for freeholders subject to management fees.  It's all down to basic contract law.  Management company has agreed to do work, residents have agreed to pay.  

    You need your paperwork to review what you agreed to, but in the meantime I'd cancel the standing order, save the amount monthly and and pay on demand.


    Currently looking for the docs atm.

    Have done exactly that - just irritating that they seem to be able to change companies/name with no communication and introduce a charge for something which we’ve been getting for years without a charge
  • LightFlare
    LightFlare Posts: 1,378 Forumite
    1,000 Posts First Anniversary Name Dropper
    user1977 said:

    This period, we were not only surprised to find that the management company has either been taken over or changed name - can they do this without informing the residents ?
    But in the next paragraph you say that they have informed you? I can't see that it makes a difference anyway, it isn't a personal arrangement you have with one company, it runs under your titles to your house.
    Only found out via the change in name on their not very polite reminder for payment (for which we and others never received the initial invoice) and after some internet research
  • user1977
    user1977 Posts: 17,292 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    user1977 said:

    This period, we were not only surprised to find that the management company has either been taken over or changed name - can they do this without informing the residents ?
    But in the next paragraph you say that they have informed you? I can't see that it makes a difference anyway, it isn't a personal arrangement you have with one company, it runs under your titles to your house.
    Only found out via the change in name on their not very polite reminder for payment (for which we and others never received the initial invoice) and after some internet research
    Ok, but what difference does it make to you that they've changed their name?
  • LightFlare
    LightFlare Posts: 1,378 Forumite
    1,000 Posts First Anniversary Name Dropper
    The estate fees put me off a purchase last year. You really don't have much power to fight the charges, and they can in effect raise them as much as they wanted if they needed to and you would be on the hook for it.

    They haven’t actually increased by a massive amount over the years - it’s more the attitude of the people and in their communication that grates most of the residents 
  • Browntoa
    Browntoa Posts: 49,591 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    They are covering their admin fees for checking monthly payments ( someone has to do it ) 

    Seems a reasonable fee for doing so .

    You could have a residents association to liaise on residents behalf with the management company to ensure clearer communication between everyone. 


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  • SarahB16
    SarahB16 Posts: 375 Forumite
    100 Posts Second Anniversary Name Dropper
    Apologies - this ended up being a bit longer than I hoped:

    We bought our house 15 years ago on a new build estate which is partially unadopted and has some common areas maintained (how I wish I had known back then)
    Our house is 100% freehold

    We have in the past paid the management fee via monthly standing order via “special” agreement

    This period, we were not only surprised to find that the management company has either been taken over or changed name - can they do this without informing the residents ?

    They also informed us, in order to continue paying monthly would attract an admin fee of £30 per period (6 months) on top of the ~£200.
    Are “they” allowed to just add a random amount for admin or should this be somewhere in writing.

    Over the years, they have been a bit hot and cold with dealings and information. This year has been bad as the invoice they claim to have sent in Nov has t been received by at least 5 households which precipitated the recent threatening letter.

    My OH spoke to a rather rude,passive aggressive lady yesterday who wasn’t much use and didn’t listen and continued to say we were obligated under the leasehold (again,we are 100% freehold for our property)

    Just after a bit of help/reassurance and any ideas if we can get rid of these cowboys? - we did try settings up a residents run management a few years ago, but sadly not enough were interested and not enough people able to
    commit the time/resources.

    Di we just shut up,put up and pay up?

    Due to these increased fees I think the residents are more likely to be happy for a residents run management company to be set up now rather than a few years ago.  

    Why don't you draft something on a A5 note and literally call round (knock on the house door) and if residents are not in put your note through their door and say you're happy to call round again at a time to suit them (and leave a contact number).   It sounds like you're happy to do a lot of the work and it would probably only need a couple or so of other committed people to help you. 

    What is key is getting the other residents to simply agree with your proposal to take over the running of their residents management company.  I think if you set out how much cheaper you will be this will swing it in your favour.

    So to answer your question you definitely don't just shut up, put up and pay up.  You try to take over the running of it yourselves but you will need the residents to vote/agree to this.  


  • LightFlare
    LightFlare Posts: 1,378 Forumite
    1,000 Posts First Anniversary Name Dropper
    user1977 said:
    user1977 said:

    This period, we were not only surprised to find that the management company has either been taken over or changed name - can they do this without informing the residents ?
    But in the next paragraph you say that they have informed you? I can't see that it makes a difference anyway, it isn't a personal arrangement you have with one company, it runs under your titles to your house.
    Only found out via the change in name on their not very polite reminder for payment (for which we and others never received the initial invoice) and after some internet research
    Ok, but what difference does it make to you that they've changed their name?
    because i wasn't sure if they were allowed to do that under "normal" contract T&Cs

    out initial contract was with firm ABC -- now its with Jones,Smith and Hughes -- therefore I was querying whether one party of a contract can just be changed with no notification
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