Managing Agent not consulting or advising Leaseholders

Luckyspal

Background

I am a Leaseholder in one of two blocks of flats, the Managing Agent, who is notorious for failing to act in the best interests of the Leaseholders, or to keep Leaseholders or their Recognised Tenants Association timeously informed of management events, or their actions.

The Agent is currently overseeing a project to replace windows and cladding for the 2 blocks. Phase 1 scope of works was for Block 1. In this the Agent’s Surveyor, Designers, Contract Administrator and Main Contractor brought the works in much later than scheduled, well over budget, and this “team” failed to follow their own contract terms and conditions.

Current Situation

For funding of Phase 2 of the project the Agent requested Leaseholders to pay the full project funding by 1st July 2025. Most Leaseholders complied. Some Leaseholders however were unable meet the deadline and the Agent agreed that in such cases Leaseholders should contact him to arrange for a deferment of payment and an arrangement to pay in stages. At no time was this arrangement, or any associated cost implications of any deferment, disclosed to all Leaseholders.

Latest information from the Agent suggests that the Preferred Phase 2 tender contract price has increased by nearly 14%. Although not fully explained by the Agent, it appears obvious that the increase is due to escalation, in the period that contract award was delayed whilst full funding was awaited.

Whilst I have sympathy for Leaseholders who could not afford to meet the payment deadline, I think that the Agent had a duty of care to all Leaseholders to warn of possible cost penalties they could incur and seek their agreement before acting.

My Questions

Has the Agent exceeded his remit in the above deferment scheme and failed in his duty of care?

Should the Agent have investigated other means of funding the payment deferment scheme, e.g. short-term loan, before acting?

If the Agent failed in the above what actions are possible?

I would be grateful for any information or direction from Forum members.

TroubledTarts

Have you considered other factors that have made everything more expensive now as well. That 14% could be to do with materials and the cost of the US Iran conflict.

Contact the management company for a reason and challenge once you know the full facts.

eddddy

In legal terms, the charges you're being asked to pay would count as 'Service Charges'.

I guess the short answer is that if you believe that the Service Charges you are being ask to pay are not reasonable (either for the reasons you mention, or for any other reason) - you can challenge them at a tribunal.

But did the Managing Agent do section 20 consultations (assuming leaseholders are contributing more than £250 each)?

Are you being asked to pay more than the amounts stated in the quotes provided in section 20 consultation?

Those leaseholders who failed to pay their Service Charges on time would be breaching their leases. Normally, leases and the law would allow the Managing Agent to charge any extra costs resulting from the breach to those leaseholders.

i.e. If the cost has gone up because some leaseholders failed to pay, those leaseholders should be liable for the extra cost.

But it depends on what exactly the Section 20 quotes said, and maybe the wording of your leases, and possibly other factors as well.

Luckyspal

https://forums.moneysavingexpert.com/discussion/comment/81990126#Comment_81990126

Thanks for the response. The Tender submission deadline was 16 May 2025, well before the conflict. In fact, the Tender submission deadline was 4 days earlier than the deadline for Leaseholders' responses to stage 1. The tender documents also stipulated that the Tender price be fixed for 3 months (16 Aug 2025)

I have contacted the Managing Agent but as usual his tactics in such matters is to ignore the issue.