RTM Settlers Court Nightmare decision for leaseholders?

RTM Settlers Court Nightmare decision for leaseholders?

10:29 AM, 6th December 2022, About A year ago 26

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The Settlers Court supreme court judgement is we believe totally unfair and unreasonable. This decision enables RTM (Right to Manage) companies to only manage their building and not any common parts i.e. gardens etc.

This takes away a key reason for RTM to manage their building and surrounding areas some of which may not be appurtenant but generally used by the RTM property.

We are two blocks of flats one RTM and the other managed. The managing agent has now sent service charge demands (400%) over previous charges to the RTM company without consultation or agreement and with no breakdown of what they are – with an upfront payment demand?

This is unfair and unreasonable if anyone has any knowledge to bear on this or any details of tribunals challenging Settlers Court that would be good. We understand that the Leasehold Reform Act may change this!

What is needed are invoices with breakdowns for actual works to the fabric of the common parts!

Jill


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Comments

Laura Delow

7:41 AM, 11th December 2022, About A year ago

By challenging the managing agents at FTT, if you win, not only will you get a refund of some/all fees charged but it should help you in your quest to change case law.

RicardoAkaApna

21:22 PM, 9th May 2023, About 11 months ago

Dear Jill,

I have a similar situation to yours. I would be interested where you got to in pursuing unreasonable service charges?

We were previously charged £15k for management for 33 flat block + garden. We now control 30 out of 33 flats. The landlord has just sent a garden budget which includes £15k of management charges just for the garden.

Kizzie

21:00 PM, 10th May 2023, About 11 months ago

I can only comment on our situation. Three blocks in freehold owning RMC, a limited company,leaseholders each one voting share. SC is for LLs , the RMC,costs of maintenance of common parts inside each block separately. The exterior and roof space not fall under SC. We sit on an estate ie common area land retained by the Freeholders ie leaseholders. These maintenance costs as Estate service charge is Rent.In our case it is Fixed amount apportioned to each whole block. If we wish to alter this amount then we apply to Civil Court. It doesn’t fall under landlord &tenant act so not FTT.

Jill Lucas

21:39 PM, 10th May 2023, About 11 months ago

Hi Ricky
Yes we have the same problem i.e. being ripped off under Settlers Court and it appears that the Freeholders believe they can bully us into paying fees without being challenged. This is where they are wrong and you can demand a breakdown of costs which they have to provide and in a worse case scenario go to tribunal. Happy for you to email me at jilllucas@uwclub.net as we do need an action group to challenge the fallout from Settlers Court

Dina Parmar

6:30 AM, 27th May 2023, About 10 months ago

I was wondering if any resolution has come about with settlers court??
We are in a similar position- unfortunately at the time of the rtm application we didn't specify our appertunent property ( garden space) and we haven't been provided with estate costs as yet. We are worried if we go tribunal we will be plonked with freeholders court fees. This could end up being disastrous. The law is unfair. I contacted my local mp and it seems the govt is backtracking on leasehold reforms changes during a recent debate in Parliament . Anyone successfully gone to tribunal without bearing freeholders costs??

Kizzie

11:35 AM, 27th May 2023, About 10 months ago

Hi
Read taylorwessing.com
report on the Judgement. Unless Supreme Court allows an appeal and you have very deep pockets and accept you may lose.
The Supreme Court ruled the RTM did not acquire the right to manage the estate surrounding the block which is the Freeholders own land and the maintenance charges are not service charge under ss 18-30 landlord & tenant act which is for sc for common parts inside the block and tax exempt. Estate charge is rent payable to the Freeholder , not tax exempt only pursuable for alleged breach of the estate sc contract through the Civil Court.

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