Percentage service charge calculation?

Percentage service charge calculation?

9:11 AM, 24th February 2022, About 3 months ago 2

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I bought an off-plan buy-to-rent apartment from Fortis a few years ago, and recently they have asked for a pretty hefty balancing charge for 2020.

I looked at the lease to see what my percentage should be, but it does not give it, unlike other leasehold properties that I own. The percentages were not on the demand either, so I asked Fortis. It turns out that there is one percentage for the apartment and another for parking, so I could not have worked it out for myself anyway.

Should the percentages be on the documentation that I hold or on demands that are sent to me?

Can I ask to see the percentages charged to each of the apartments in the block, or do I just have to accept what they have told me?

Many thanks

Alan



Comments

by Rod

11:18 AM, 24th February 2022, About 3 months ago

Short answer is yes.

Your lease(s) should define the basis that the s/c is apportioned to lessees. This can be based on one of a number of factors, including square m/ft, number of units in block, number of bedrooms in each unit, number of defined bed spaces (max occupancy), rateable value, etc.

You are entitled to see the accounting records in order to determine whether charges are fair.

If you are not able to resolve unexplained or excessive charges, you have the option of taking your case to the first tier tribunal

by Mike in Worthing

13:01 PM, 24th February 2022, About 3 months ago

You can also apply to the FTT to vary the lease if it does not make satisfactory provision for the computation of service charges. Landlord & Tenant Act 1987 s.35(2).


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