New management company appear out of thin air demanding thousands?
Hello, I bought a 999 year leasehold flat in January 2015. Despite thorough searches by my solicitors, no management company was identified and the local London council who was the original freeholder wrote a reply stating that they were not the freeholder.
Roll on to March 2023 and a Management Company that I have never heard of or dealt with has written asking for block management fees. We are a block of 6 flats and they are asking for ground rent and management fees for maintenance and insurance amounting to about £1800 per flat.
Since 2015 we have maintained and managed the block ourselves, taken out our own block insurance policy and carried out fire risk assessments and so on. This new management company is completely unknown to us, has written no letter of introduction and just sent us a straight bill.
On their invoice, it states it acts on behalf of the freeholder which is the London Borough which has written to me in 2015 denying they are the freeholder. So far none of us have paid but the pressure is mounting and we are not sure where we stand.
Any advice would be gratefully received,
Sageer
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Member Since July 2013 - Comments: 754
2:39 PM, 8th November 2023, About 2 years ago
Reply to the comment left by Ranger78 at 08/11/2023 – 12:31
@Ranger78 – Per your update – yes, £1800 pa is rather more to be concerned about .
Suggest you try and get verification and rent authority letter from the freeholder and/or a letter from the agents to show that they have been appointed by the freeholder. Are they members of RICS, ARMA or any other professional organisation? Have you done any other due diligence on them?
Member Since December 2021 - Comments: 9
2:44 PM, 8th November 2023, About 2 years ago
Reply to the comment left by Steve O’Dell at 08/11/2023 – 14:11
Hi, I did take out this insurance as this was the route sols advised. Do you know what it covers. I’ll dig out or obtain a copy in the meantime. Thx for your help.
Member Since April 2021 - Comments: 120
6:32 AM, 11th November 2023, About 2 years ago
It is highly unusual for a London Borough to appoint a Management co. As advised by everyone, I would check everything out before I part with a bean.
Member Since December 2021 - Comments: 9
8:46 AM, 11th November 2023, About 2 years ago
Reply to the comment left by Laura Delow at 11/11/2023 – 06:32
Thank you for this helpful comment,
Member Since December 2021 - Comments: 9
8:47 AM, 11th November 2023, About 2 years ago
Reply to the comment left by Steve O’Dell at 08/11/2023 – 14:11
Thanks, This was taken out so I’ll look it up.
Member Since October 2022 - Comments: 410
9:00 AM, 11th November 2023, About 2 years ago
A management company usurping the genuine management company and a party embedded in leaseholders leases and using the same company name but without its company registration number and collecting ‘service charge’ but treating this money as an imposed charge meaning it is not variable with rights to reasonableness and not paid to the Lessor or Landlord but treated as company money not held in trust and not disposed of as per terms of the lease , exploiting leaseholders ignorance of landlord & tenant act etc. This might be a widespread fraud.