Trouble with managing agent over directorship?
3 years ago | 7 comments
Is my managing agent keeping me in the dark about a known building issue?
9:25 AM, 5th March 2024, 2 years ago
23
Hi, I planned to sell my flat this year, but have only recently been told (by chance) that there is an existing issue within the buildings in the same development – i.e. the possibility of pipes, embedded within cement, leaking and causing extensive damage to the flats involved.
A few days later, my managing agent was in the building (he’ll be selling my flat). He seemed surprised that I knew about the pipe issue, but eventually described the situation as a “ticking time bomb”, as the issue had occurred 5-6 times in the same development over the past five years.
He told me it was nothing to worry about and said I wouldn’t need to mention the issue to prospective buyers. I’m not an expert, but surely that would be at least unethical, at worst illegal?
He also told me that any damage to the individual flats (i.e. new kitchens/bathrooms etc) would be covered under the building’s insurance. I hope that’s correct.
Also, shouldn’t our managing agent/management company have apprised all of the flat owners of the situation years ago and perhaps even have preempted the problem at an earlier stage, hopefully causing less disruption to both owners & tenants?
This is a very stressful situation, so any advice would be much appreciated.
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Member Since October 2022 - Comments: 403
9:57 AM, 5th March 2024, About 2 years ago
The managing agent is contracted to the management company. Does the man. Co. hold the freehold interest? Structural repair is the responsibility of the freeholder under the building insurance and you are entitled to inspect the policy under landlord & tenant act because the premium is a cost contribution to your service charge.
Member Since January 2015 - Comments: 1431 - Articles: 1
10:12 AM, 5th March 2024, About 2 years ago
Contact the Freeholder direct.
If out of NHBC this would likely be covered under the block buildings insurance. Has a claim been made? If not, why not?
Member Since July 2023 - Comments: 10
10:50 AM, 5th March 2024, About 2 years ago
Member Since July 2023 - Comments: 10
11:08 AM, 5th March 2024, About 2 years ago
Member Since October 2022 - Comments: 403
11:28 AM, 5th March 2024, About 2 years ago
Hello Loretta
I would contact the Land Registry with your title number and ask them to name the freeholder.
It seems to be a red flag that the MA is undertaking structural repairs when you are paying your contribution to block insurance. I’d be wondering whether there is block insurance if they are hiding incidents of repairs and how these are paid for if not covered by insurance. It is an offence if there no insurance. This suggests these costs are unlawfully added to your service charges.
Of course you have to declare these repairs to prospective purchasers of the lease to your flat
and the issue of block insurance. Otherwise you could be sued. This advice by MA is also a red flag.
Member Since July 2023 - Comments: 10
12:14 PM, 5th March 2024, About 2 years ago
Member Since July 2023 - Comments: 10
12:24 PM, 5th March 2024, About 2 years ago
Member Since October 2022 - Comments: 403
1:50 PM, 5th March 2024, About 2 years ago
Reply to the comment left by Loretta at 05/03/2024 – 12:24
Oh my goodness. The freeholder must be laughing all the way to the bank.
Your lease states what sc all 9 leasehold contributors to make towards maintenance of your building , the costs are apportioned to add up to 100%.
You don’t contribute to the structure of the building.
Do you get annual certified by independent auditors summaries of what the service charge is spent on and does it match with what your lease states you are liable for?
Member Since July 2023 - Comments: 10
5:13 PM, 5th March 2024, About 2 years ago
Member Since March 2015 - Comments: 22
1:22 PM, 6th March 2024, About 2 years ago
Reply to the comment left by Loretta at 05/03/2024 – 17:13
I have the same issue i.e. pipes inadequate material and likely to leak. The block is under 20 years old and has 47 flats and is managed by a residents management company but owned by a separate freeholder. I had severe damage to my flat that was covered under the building insurance and the flat had to be completely gutted and refurbished due to mould from leaks. I ended up with a beautifully refurbed flat but it did take the insurers 5 years of work! They paid my rental income throughout. as the tenants had to move out for the repair. So, I guess it is all a matter of what is covered by your building insurance. You are entitled to a copy of this by law and your managing agents should send you a copy on request. Or your freeholder. They cannot withhold it.