Management Company Overcharging?

by Readers Question

11:23 AM, 11th May 2020, 6 years ago 23

Categories:

Landlord News Landlords Questions

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/

A service charge is not payable unless it is reasonable but it is risky to withhold payment because this is likely to be a breach of your lease. It may be better to contact your landlord and express your concerns about the charge. You can try and resolve the situation amicably, perhaps through mediation. If this fails and you have evidence to challenge the charges, the matter can be determined by the First-tier Tribunal (Property Chamber).

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

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Comments

Jayemgee

Member Since April 2020 - Comments: 8

12:01 AM, 16th May 2020, About 6 years ago

Reply to the comment left by BernieW at 15/05/2020 – 13:41
THER ARE 36 FLATS SO IF I GET O JOY I WILL VISIT MY FRIEND WHO LIVES NEARBY THE FLATS AND TRY A PERSONAL LETTER THROUGH THE DOOR OR KNOCK. THERE HAVE OPEN FRONT AND RER DOORS. FP TOOK AWAY THE SECURITY SYSTEM WHEN THEY REPLACED THE DOORS!!!

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Jatinder

Member Since December 2020 - Comments: 4

10:55 AM, 17th February 2021, About 5 years ago

yes, you can challenge the service charge according to the given laws. I think you can get an apt help at the valuation experts and you also get enlighten about leasehold expiry.

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Jaye

Member Since December 2019 - Comments: 34

12:41 PM, 17th February 2021, About 5 years ago

Reply to the comment left by Jatinder at 17/02/2021 – 10:55
Thanks a lot. I’ll look at the link. Much appreciated.

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