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My Freeholder is refusing to complete a management pack.

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  • Mappyman1955
    Mappyman1955 Posts: 7 Forumite
    First Post
    Hi Eddy, thank you for this. Yes you seem to get it. When we changed agencies 12 years back reserves funds and money in the account did not match up. We all patched in to get a solicitor and that solicitor told us not to pay the rent demands. For several years an owner of 3 flats never paid their service charges. They were taken to court and won their case. So there occurred a hole in the accounts where money was taken from the reserves to make up for unpaid service charge by these flats. Eventually the freeholder sold the freeholder to a new freeholder and sent them the extra money which was taken from the reserve funds. Then the new freeholder started charging us and never accounted for the  shortfall. So many residents never paid. So for about 18 months we never paid the new freeholder then won a RTM as we were fed up with the new managers. From the RTM 12 years ago I have never heard from them or did they ever demand any money. Not once in 10 years. Only now when I need them to produce a management pack they have refused. They say I have to pay them. I told them about the accounts not being correct and I am owed money. It makes no difference. They now want to be paid to complete management pack, and with added fees. Strange how they never asked me for this money or ever took action against me. They want payment in full. Swines. I am really stuck.
  • Mappyman1955
    Mappyman1955 Posts: 7 Forumite
    First Post
    Justine.

    Yes just management costs for abut 18 months worth. As I never paid during that time every so often they would add charges. After we got the RTM they never asked for this money. They want it now and as a condition to produce a management pack they say the old arrears must be paid. When I check AI about if a freeholder can do this it says no. I told the freeholder this and they dismissed it as coming from Ai. They told me to go to a solicitor. My solicitor helping me sell the property says it is not in her remit to get into disputes. She is a conveyancer only. She said she needs the record to be cleared and paid in order for me to complete. I am hesitating and soon my buyer may see this dispute. It could delay my sale. I need to move as I got cancer diagnosis now do not want to fork out this money which I think I do not even owe them. Damn
  • user1977
    user1977 Posts: 17,743 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper

    When I check AI about if a freeholder can do this it says no. I told the freeholder this and they dismissed it as coming from Ai.
    That seems reasonable, given some of the "legal advice" I've seen produced by AI - ask here and get some actual humans to answer...
  • eddddy
    eddddy Posts: 17,965 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 29 May at 5:55PM
    Hi Eddy, thank you for this. Yes you seem to get it. When we changed agencies 12 years back reserves funds and money in the account did not match up. We all patched in to get a solicitor and that solicitor told us not to pay the rent demands. For several years an owner of 3 flats never paid their service charges. They were taken to court and won their case. So there occurred a hole in the accounts where money was taken from the reserves to make up for unpaid service charge by these flats.

    <snip>

    So it sounds like the best way out might be to pay the service charge (so you get the management pack), and then challenge the service charge at tribunal.

    (In your position, I wouldn't mention AI to the Management Company or Tribunal. If somebody told me they were using a generic AI for legal advice, I'd probably take them less seriously.)



  • silvercar
    silvercar Posts: 49,513 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    If they took the money owed from the reserve fund, surely it is the reserve fund that needs reimbursing.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Mappyman1955
    Mappyman1955 Posts: 7 Forumite
    First Post
    HI Silver. Yes apparently the past freeholder put paid our present freeholder about 14,000 they had taken from the reserve fund to fund non payers of the flats who had not paid for 3 years but I never saw it, my invoice charges never changed or was I credited. 12 years ago we had a solicitor and they told us not to pay. So I did not. They never chased my for the 3500, odd and is now about 4,500. No demands in 10 years. Only on them being asked to provide a management pack they refused unless this arrears are paid off. The freeholder now even sent a demand to pay these 10 year old charges within 14 days or they will add more charges. Seems they have me over a barrel. Every time I ask google and AI they say the freeholder is not allowed to withhold making a management pack if asked. It is their obligation to provide a pack on request in order for me to complete my sale. The freeholder say my arrears have to be cleared. I do not want to pay them what I think was never due, if it were due they should have taken legal action against me, and that they did not shows they know the charges were iffy in the beginning. Seems now I have to pay iffy charges in order to get them to provide that pack. Looks like I have little choice.
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