Extortion to pay their own management company!Make Text Bigger
I had to review the service charge breakdown for two apartments in one development this year, as this and last year service charges have risen to almost double from all previous years.
What I found is interesting and these are the biggest items;
- Management fee 70k
- Building insurance 128k
- Fire door audit 34526 (an audit costing 35k)
They obviously depend on what actual repairs and work to be done, but having management fee at 70k and a building insurance costing 128k is astonishing.
As a comparison, another leasehold building where I own in one of the most expensive borough in London, only has management fee at 25k and building insurance at 26k.
Mostly importantly, the freeholder and the management company is own by the same people. Clearly they have been paying themselves with all leaseholder money.
This is only one of the ways freeholder and their management company bullying leaseholders across the country.
Are they allowed to do so? What rights are on leaseholder side to challenge this?
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