The lease should set out how your service charge will be calculated. Often it is a percentage or proportion of the total costs of repair, maintenance, management and insurance of the building. The amount you pay will normally vary but a few leases provide for a fixed service charge
Management Company Overcharging?
11:23 AM, 11th May 2020, 6 years ago
23
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Hi All, I paid £972 for my flat’s annual service charge for 2019 in full last year (as stated in my invoice. This year, the service charge went up to £1300, which I already paid 50%.
Now, I just received another invoice of £880 from the managing agent stating it is the service charge balance for 2019 in addition to the £972 already paid. ie, They claimed that last year’s charge was under budget and I should pay £880. (Service charge Reconciliation)
Can they do this?
What can I do to challenge this?
Jay
Notes: Leasehold Advisory Service >> https://www.lease-advice.org/faq/i-have-received-a-service-charge-demand-and-i-think-it-is-too-high-what-should-i-do/
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Member Since April 2020 - Comments: 8
10:05 PM, 12th May 2020, About 6 years ago
I have the exact same problem with FP. Put in an official complaint and ask for their complaints policy. There is an Ombudsman scheme for everything. FP so increase my maintenance charge I cannot sell. They are a nightmare as they are so big they are taking over everywhere. The leasehold advisory service failed to keep the booked telephone appointment I made. JM Gee
Member Since July 2013 - Comments: 1264 - Articles: 1
10:07 PM, 12th May 2020, About 6 years ago
Yes they can, but you are entitled to know why the budget was so far out and you are entitled to the accounts on which they are based which should show what it was spent on.
When you have that, come back to us because it may be that there should have been a consultation before work was done
Member Since December 2019 - Comments: 34
9:11 AM, 13th May 2020, About 6 years ago
Thank you – Neil, Puzzler, Jayemgee, Jim, Terry, Dylan, Tim & Richard etc for your advice on this.
I would have thought they would have been a consultation or a notice before any works which I suspect were the overgrown hedges etc, for a total of 18 flats.
Member Since October 2013 - Comments: 52
9:15 AM, 13th May 2020, About 6 years ago
Reply to the comment left by Jaye at 13/05/2020 – 09:11
Depending upon the size of the expenditure to deal with the overgrown hedges, it may have triggered a Section 20 process, allowing leaseholders to review the estimates, and also put forward alternative contractors to quote for the work, but whatever, it should have been transparent?
Member Since August 2016 - Comments: 1190
10:06 AM, 13th May 2020, About 6 years ago
So………. do we actually know the reason why the deficit on the annual expenditure has occurred ?
Member Since April 2020 - Comments: 159 - Articles: 1
2:20 PM, 13th May 2020, About 6 years ago
Speculating about why the service charges have increased seems rather pointless to me. Contact the managing agent and ask for copies of the budget, demands, accounts … and any section 20 consultation papers for major works. Read them and learn what you should know. If appropriate go and examine the service charge invoices, bank statements and supporting documentation. Make sure you understand.
Then RTBL … Read The Bl00dy Lease … and find out what you’re supposed to be paying for by way of service charge – and how you’re meant to be charged; e.g. budget, two half-yearly interim charges, and a balancing charge/credit after the year end. Make sure the demands you’ve been sent are in line with those requirements.
If all does not seem correct – consider an application to the First-tier Tribunal (Property Chamber) requesting a determination on what is legally / correctly payable.
Alongside all of that – consider clubbing together with your fellow leaseholders to purchase the freehold – or implement Right to Manage – or whatever is the best route to controlling your destiny. There’s a free download here about how to fire your freeholder > https://berniewales.co.uk/free-downloads/
Don’t just sit and moan. Do something about it!
Member Since April 2020 - Comments: 8
12:01 AM, 14th May 2020, About 6 years ago
I put in Official complaint and it is still ongoing. I will be contacting them now about consultations but as I am stranded out of UK it has to await repatriation. They continue to do jobs that the previous company managed the block well without for ever calling out people . Now we have lost out hedging rather than having it trimmed. Hence another cost. FP CONSULT ABOUT NOTHING and all the flats are tenanted so owners do not know one another.
Member Since April 2020 - Comments: 159 - Articles: 1
9:08 AM, 14th May 2020, About 6 years ago
Reply to the comment left by Jayemgee at 14/05/2020 – 00:01
Tenants have letting agents. Letting agents have landlords, to whom correspondence can be forwarded. You can also find leaseholder names and addresses at HM Land Registry.
But to make an application to the First-tier Tribunal about “unreasonable service charges” you just need you.
And help is available if needed.
Member Since April 2020 - Comments: 8
3:51 AM, 15th May 2020, About 6 years ago
Reply to the comment left by BernieW at 14/05/2020 – 09:08
I will try your suggestion re Land Registry as I live 500 miles from the flat that was mine and I cannot sell – mainly due to FP massive management fees.
Member Since April 2020 - Comments: 159 - Articles: 1
1:41 PM, 15th May 2020, About 6 years ago
Reply to the comment left by Jayemgee at 15/05/2020 – 03:51
You could try writing to “The Occupier” at each flat and asking whoever to contact you with details of the flat owner … and explain why. Once you get hold of one leaseholder, ask who else they know … etc etc.
Also, a lot of First Port leases are “tripartite” – meaning there is a Residents’ Management Company involved. If there is – you’ll be able to find shareholder and director details via Companies House.