Leaseholders and service charge on different sized flats?

by Readers Question

9:29 AM, 16th November 2020
About 3 weeks ago

Leaseholders and service charge on different sized flats?

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Leaseholders and service charge on different sized flats?

The building split into 15 different sized flats is managed by a board of directors from the leaseholders. It has worked reasonably well, but now that the building is in need of updating and also some hefty repairs (roof) the directors have decided that they will change the way that the service charge is paid.

It was on percentage, and they want to make it an equal split – obviously there have been objections so backed down on that, and now want the service charge on the original percentages and the repair fund to be split equally as there is a bit of a weird thought that all flats use the building equally – they are from 1 beds to 3 bed penthouses (2 of those).

Major works have already been done to the roof with no S20 (if it’s self-managed do they need to issue this?) and no tender process, it was the people who usually do the repairs instructed.

4 directors from 3 different flats are currently making these decisions, one director has disagreed so the letters are going out without his name on it.

A loan was taken out by the directors in the name of the building to fund some works last year.

I can’t help but thinking that this is not quite right but finding it hard to word.

Elizabeth


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Comments

Puzzler

7:08 AM, 17th November 2020
About 2 weeks ago

They cannot vary the lease without unanimous agreement of all members (not just directors) and the lease must be formally varied by a document drawn up by a solicitor. Minutes are not enough. The directors are outside their authority. See a specialist quickly.

Harlequin Garden

11:19 AM, 17th November 2020
About 2 weeks ago

Thanks everyone for the comments - just to clarify, the service charge is stated in the lease to be paid by size percentage - which was fine for 10 years but now the costs are mounting and works need to be done the larger ones (who have put themselves up as directors and in one case 2 directors for one flat) want this varied. I will pass on your comments, I believe the friend I asked this for (also very useful for me to!) is now in touch with the Leasehold Advisory people.

Puzzler

16:19 PM, 19th November 2020
About 2 weeks ago

Let us know the outcome!

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