Management Company Deficit Charge Letter – can this be legitimate?Make Text Bigger
I have recently received a letter from the management company for my flat. This is it:
“AS you are probably aware there was an increase in the service charge payments for this financial year 2015/16.which can be directly attributed to an increase in legal costs.
Unfortunately one of the residents has undertaken legal proceedings against xxxxxxx and two outside parties for various claims.. From xxxxx perspective these claims are strenuously disputed.
xxxxxx is currently going through an appeal process having successfully managed to get the case struck out earlier in the year.
Regrettably the management Company has had to extend significant amount of monies protecting their position, which has led to a deficit on the accounts for the year ending March 2016.
AS such the Management Company will now need to send out a deficit charge letter to each resident to ensure they are made liable to continue with protecting their position whilst carrying out their wider on-going maintenance responsibilities.
We appreciate that you’ve not been given much information up to this point, but unfortunately to ensure their legal position is protected we are restricted in what we can share until this issue has been resolved.”
This seems outrageous to me. They say they are charging me for something that is nothing to do with me or to do with maintaining may flat. Can they do this? I don’t see a valid basis for the charge and I am not aware I gave them any agreement to charge me for anything else but maintenance.
I want to fight this. Any advice would be gratefully received.
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