Service charge hike?
11:14 AM, 17th June 2019, 7 years ago
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I own a couple of properties where First Port are the property managers, but they seem to be raising service charges at an incredible rate.
As an example over the last 2 years the annual charge has gone from circa £1,100, which I thought was already quite high, to £1,600 which is crazy.
Is there something I can do, or rather is there a good way to question this with them as I’m concerned that at this rate the property will be unsalable in the future.
Many thanks
Mark
25 comments on this article
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Nottingham - These words are not nice
Member Since August 2016 - Comments: 1196
10:24 AM, 18th June 2019, About 7 years ago
Reply to the comment left by Richard Adams at 18/06/2019 – 10:16
Yes it depends on your situation. If an RMC (residents management company) was formed at the outset then the residents are appointed directors and will arrange the insurance. And appoint a management company to run the site. Like you say you can hire them or fire them, so have total control.
However in Mark’s development he says there is a Managing Agent appointed by the freeholder. So there is no RMC and the freeholder directly runs the site, appoints the agent and the freeholder is responsible for arranging the buildings insurance hence why in most cases the insurance premium is jacked up.
Member Since August 2016 - Comments: 1196
10:28 AM, 18th June 2019, About 7 years ago
Reply to the comment left by Mark Lynham at 18/06/2019 – 10:18
They should automatically be sending you a copy of the service charge accounts, you shouldn’t have to request them. These have to be issued within 6 months of the year end, otherwise if there is a delay a Section 20 notice (informing of the delay) has to be issued to all leaseholders by the managing agent.
Member Since November 2013 - Comments: 149
10:38 AM, 18th June 2019, About 7 years ago
Reply to the comment left by Richard Adams at 18/06/2019 – 10:05
thanks Richard, good point about AGM, i’ll have a look at that… they do have a representative that visits the ‘site’ and we can air concerens on maintenance but maybe the next time she is there i should go meet her to air concerns on the service charge hikes that have been happening.
Member Since August 2016 - Comments: 1196
10:48 AM, 18th June 2019, About 7 years ago
Reply to the comment left by Mark Lynham at 18/06/2019 – 10:38
If there is no RMC in place and the situation is as you say Mark simply run by the freeholder, then you will not be a shareholder (as there is no limited company set up to manage the site) and hence there will be no AGM for you to attend.
Member Since November 2016 - Comments: 227
10:56 AM, 18th June 2019, About 7 years ago
First Port is a reincarnation of Peverell.
A quick Google will reveal a lot. ?
Member Since April 2014 - Comments: 37
10:57 AM, 18th June 2019, About 7 years ago
It’s not easy but you could form an RTM company and take over the management of the block.
We have flat which First Port manage and lets just say they are not very good.
Member Since July 2016 - Comments: 66
11:13 AM, 18th June 2019, About 7 years ago
Such is the joy of the unregulated managing agent market!
Laws need to change and you can join the cause. Unfortunately the consultations are passed, but you can still support the petitions.
https://petition.parliament.uk/petitions/238071
https://www.property118.com/support-abolition-leasehold-favour-commonhold/
Member Since November 2013 - Comments: 149
11:16 AM, 18th June 2019, About 7 years ago
Reply to the comment left by Martin Roberts at 18/06/2019 – 10:56
oh i know….
Member Since July 2016 - Comments: 66
11:16 AM, 18th June 2019, About 7 years ago
This is this one that you can do
https://www.gov.uk/cma-cases/leasehold
And keep an eye on these groups, any new consultations and requests for info are always talked about here
https://www.leaseholdknowledge.com/
https://nationalleaseholdcampaign.org/ (on facebook too)
Member Since November 2013 - Comments: 149
11:29 AM, 18th June 2019, About 7 years ago
Reply to the comment left by Gracie at 18/06/2019 – 11:16
thanks Gracie, i’ll have a look at those!