Management Company

OLS

I didnt really know where to put this but seen as its only come to light when selling our house and us pestering them I thought I would put it here...Its quite long, Ill shorten it the best I can, Ill prob have some bits where I dont make much sence but its 4.25am, Im shattered

Apt purchased Summer 2005, Service chanrge £170 pq. We were paying this and had no problems with any services for the first year (i.e if gate broke it was fixed asap etc). The accounts for yr end April 2006 came back, we complained about paying the gardner and window cleaners who never came, paying a month gate maintence charge then when it broke down paying for them to come fix it Etc and they said would sort it. The in April 2007 they said everything was in with the accountants and when it was back would have the AGM (there are 23 apts but only the same 4 of us who go & vote at the meetings). Every month we rang and got told 'still waiting for the accounts'' We FINALLY had the AGM in Oct. In the mean time in about summer we had our service charge reduced to £140 pq as there was excees funds and they decided people were paying to much. We had the accounts through, looked them over, expendature was well up from the previous year but fine as it wasnt a full tax year plus a new build so we figured it had brought its self in line. There was an excess of about 5.5k at the end of the tax year April 2007. They advised at the meeting we could a) put in a sinking fund so in the future is a major problem occurs it would pay for it to be fixed or b) have it re distributed back out. We voted for it to be redistributed (our on market, the other 3 planing on trying to sell soon), vote was passed and we were advised would be refunded ASAP. We Complained about loads of things that had happened over the past 6 months that they were informed about that had not been fixed. She put it all in minutes and said would all be sorted ASAP. - She also told us that at that time (1/2 way through current tax year) we were already 13k up on our accounts!

Then we get an offer on apt a week after meeting. MGMT company take soooo long to respond to queries (that they charged us £300 for answering) we think it had a helping hand in buyer walking away (i.e saw the neg press since jan but if they had pulled finger out would have been done in 6 weeks and no chains anywhere). They also tell sol, he must keep £175 back from us to give to them as a holding charge incase when they do the next accounts (april 2008) we owed them any money (even though they sent full statement, saying we were paid to date), sol said didnt have much choice as wouldnt sign off on the sale otherwise! They also told sol, we wernt getting any money back from sinking fund :eek:. I emailed them about the refund and got a reply stating they had had an electrics bill in from 2006 they hadnt paid and had to pay it out of the money they were due to refund us and the MD said no one was getting anything back. OH rang up to seriously have a go about all the 'problems', like we wanted a new carpet in the lift, the back gate to the car park had been stuck open for weeks, various things and they said ''there not fixing the gate as someone has driven in to it'' (even though we had been told it was a cable error and they were waitng for a new part) and were not paying for it, the carpet is not important, we owe £8k to the electricity company, we have some problems with the accounts.

Now 1st can they do this....i.e vote and minute an AGM we get refunded then get the supposed leccie bill in of 8k from 2006 (on the accounts for Tax yr ending april 07 they paid 4k to leccie comp, surley the leccie comp would have raised this further 8k then and not continued to light the comunal areas with that much debt on the account?)...have asked to see the bill, no such luck....and then say, no not getting it now and 2ndly how can they accounts, have been done by a proper accountant and be so out and messed up.

We were wanting to seek legal advice but dont fancy paying for them to say ''nothing you can do'' Its just such a bloody cheek £300 for queries, £140 p/q, £175 in case we owe anything - then they say cant fix anything and in debt.......!!!!!!!

management companies - shoot them all!

martinman3

Could you clear up a few points which would indicate the control you and other leaseholders have over the management of the building.

Was the AGM for a Residents Association, Right To Manage company or Residents Management Company ?

Were any of those present at the AGM representatives of the Management Company ?

It is odd for a Management Company to reduce charges because they have collected too much money. It is sensible, make that essential, for maintenance demands to include a portion which is put towards a sinking fund. Unless the lease prohibits it, the advance payments could be returned but it is very short-sighted of the leaseholders to ask for this. If the unpaid electricity bill is genuine then it demonstrates the very reason for the sinking fund. The AGM minutes probably say that you voted to return any excess payments and after the bill is paid there won't be any. I assume that those present at the meeting were angry about the others who weren't but making things difficult for them when you're all gone is not a good idea. The solicitors of any prospective buyers will ask the Management Company about the sinking fund and not having one may be buyers off, or rather it should.

Concerning the electicity bill, it is possible that the meter has been misread until recently or the wrong meter has been read but I would ask to inspect the bill they have received to reassure yourself that the Management Company are telling you the truth. You have the right to inspect the last years maintenance accounts and within 6 months of receiving it ask to see receipts etc but in this case it wouldn't help you.
As the bill of £8k divided by 23 equals £347, which is more than the £250 per flat max for repairs/maintenance it may require consultation.

I think you must contact LEASE about this http://www.lease-advice.org/ as either you are all very unlucky to get a genuine bill and/or the Management Company may be using a loophole in the law to stop you getting the money back.
p.s. the Sinking fund must be held in trust by the Management Company by law, check this if you can.

What exactly you can do about this depends on the answer to the first question.