Issue with Management company random charges?Make Text Bigger
Have a couple of flats in one block. The typical lease fee was £195 every quarter.
The solicitors acting on their behalf are now threatening to take us to court for breach of contract and are threatening to apply to the courts for a Possession Order if we do not pay the outstanding balance of the in 14 days.
We had not received any bills, but on the statement was a charge for £974 rather then £195 as normal.
We had already queried what this charge was for, but had not received any response from the management company. The solicitor just advised that the cost could go up or down and seemed to dismiss the query.
On reading the Lease with the management company we found the following Clauses:
“Estate Charge Covenants
The Management Company covenants with the tenant and with the Landlord in accordance with Clauses 6.1, 6.3, 6.5 and 6.6 and the Tenant Covenants with the management Company in accordance with Clauses 6.2, 6.4 and 6.6
The Management Company shall as reasonably practicable after the first day of August in each year prepare estimates of the sums to be spent by itself on the matters specified in the Third Schedule in respect of the year commencing on the first day of October next and shall notify the tenant of such estimated costs:
The tenant shall upon receipt of a demand therefore pay the Estate Charge to the Management Company in advance on the 1st October in each year throughout the term and a proportionate part shall be paid in advance on the signing hereof.”
I believe this means they should confirm the charge every year by 1st October.
We have had no such confirmation in 2016 and none so far this year.
I think this means they are breaching their own agreement in changing the rates without notification which is quite worrying.
Would welcome any feedback or suggestion of how to find a way forward and were can we get good legal advice on the matter,
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