Is the increase in my service charge legal?

Is the increase in my service charge legal?

9:35 AM, 10th January 2014, About 9 years ago 13

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The management company of a development of apartments is trying to raise the service charges. The increase in the charge wasn’t on The AGM agenda as such, however it was discussed during the AGM and agreed. Unfortunately, I wasn’t
able to attend the AGM (being one of the landlords).

Interestingly, the only attendees for the AGM were 2 directors. This is a very large development, so I am not certain how legal is it that the increase has been agreed to, only in the presence of 2 people out of the whole site?

Is that legal and binding to every one? Is the increase in my service charge legal

Looking forward to reading your thoughts.

Thanks in advance



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Gary Nock

10:13 AM, 11th January 2014, About 9 years ago

This is difficult to put a figure on as it all depends on the development. The managing agents should have done a survey that identifies short,medium,and long term expense items based on what is specified in the lease. For example internal and external decoration may be in the lease every 5 years. If this costs £5000 every 5 years and its in a development if 50 flats then each flat would contribute £20 per year into the reserve. Then repeat this process for driveways, lifts, roof maintainence and you then get an overall figure per year that each flat contributes.

New member

18:48 PM, 11th January 2014, About 9 years ago

Reply to the comment left by "Gary Nock" at "11/01/2014 - 10:13":

Many thanks, thats really helpful comments. Are you aware of a minmum requirement of attendees to the AGM, to make such decisions legal? I am uncertain if this is likely to be included in the lease terms. As mentioned before, it was only attended by 2 directors (who are 2 landlords).

Gary Nock

19:07 PM, 11th January 2014, About 9 years ago

If this is a RMC or an RTM you will need to check the company formation paperwork (mem and arts) to see what qualifies as a quorum. You can download this from Companies House.

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