Major works not being implemented

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  • Gordon999
    replied
    After the RTM legally replaces the existing MA as party responsible for administration of the service charge account , you should be one of the RTM Directors making the decisions .

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  • Edwardthebear
    replied
    Thanks Gordon - that seems a viable suggestion. If my property (miraculously) miraculously sells soon, does the £10k credit on my account get sold with the property, or is it returned to myself? Selling with a £10k credit is certainly more appealing to a first time buyer as there will be no large bill on the doorstep when they move in.

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  • leaseholder64
    replied
    Obviously it imposes a requirement to pay the service charges as well.

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  • ram
    replied
    Originally posted by leaseholder64 View Post
    In my lease, freeholder repairing obligations are conditional on the payment of service charges.
    If that's the only stipulation in your lease, then it's going to deteriorate at a fast rate and none one will ever want to buy a flat there.
    Of course, if no one pays service charges, repairing obligations cannot be performed, but your lease must say somewhere that the place MUST be maintained, therefore service charges have to be paid to comply with the repairing obligations.

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  • Gordon999
    replied
    If there are only 4 flats in the block, you could with the support of 2 other flats set up RTM to legally take over the service charge account from the freehold company. Download a free guide on setting up RTM from www.lease-advice.org

    Then you cancel the 10K work and start again by appointing another MA to run the service charge account under instruction from the leaseholders. .

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  • Edwardthebear
    replied
    No- I've not seen the accounts yet but may be worth the approach.
    This delay in major works isn't my first experience unfortunately. A few years ago I paid £800 for my contribution to some asphalting works to the front steps. The works were never carried out. It took 4 years of correspondence to get the the sum back. The MA admitted that I was the only one who has paid their contribution.
    My other 'tack' is to try and get the £10k back before (hopefully) selling up. If it is true that a 1st Notice expires after a year, then the Jan 2017 has expired. Are these grounds for a requesting a rebate? Or are there any other grounds for a rebate I could pursue?

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  • leaseholder64
    replied
    Although it is clear that the two notices are being issued in this case, only one notice is required if the contractor has been appointed by a qualifying long term agreement.

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  • vmart
    replied
    By the way all section 20 consultations require two notices (pre-tender stage and tender stage) so you might want to look into this.

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  • vmart
    replied
    If you want to see the accounts and have not already been sent a summary write and ask for a copy of the accounts. If you are not satisfied or do not receive the information make a formal request for a summary of relevant costs incurred under the Landlord and Tenant Act 1925. See:
    https://www.lease-advice.org/advice-...-other-issues/

    Scroll down to Section 3.3.

    Also see Section 3.2 'The Holding of Service Charges - Trust Accounts'.

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  • paulamis
    replied
    So you had paid 10K3 in advance and the MA did not pay the gardener!

    Have you asked to see the accounts yet, you can try to get an idea how much is in the service charge account, but I don't think you have a right to see that, but you may get lucky.

    I don't think you have any protection from the agent using your funds to fund the shortfalls of others.

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  • Edwardthebear
    replied
    I have considered suggesting RTM to other Leaseholders. However past experience of trying to get smaller funds together for smaller works have often been 'labourerd'. Also, even if we did form a RTM co., there is nothing to stop the problem defaulter still not paying for the Major Work. In fact they may even be less inclined to pay up to a smaller company.
    I've had a number of other issues with the MA including paying upfront for gardening services for a year (about £300). The gardener refused to carry on working at the property as the MA was not paying his invoices. Since April, the MA has not found a substitute gardener and the garden looks a complete mess.
    I think my hands are tied trying to effect any MW's.. If I start any form of proceedings again the Freeholder for not maintaining the property then this will be flagged up upon sale to a vendor by the solicitors. My only option seems to be drop a lot off the asking price and get rid of the property ASAP, or take it off the market and start pursuing the Freeholder to try and get the MW done.
    Thanks for all your replies.

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  • leaseholder64
    replied
    In my lease, freeholder repairing obligations are conditional on the payment of service charges.

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  • ram
    replied
    The freeholder obligations will be set down in the lease, to maintain and repair, and to keep in good condition.
    Courts have ruled, and the lease expects that repairs, maintenance etc, be done within a reasonable time.
    The freeholder is therefore in breach of the lease by not carrying out maintenance within a reasonable time, ( lets say 4 months if S 20's ), 3 weeks if it's cutting the grass as a regular service charge.

    The freeholder has to forward the money if there are not enough funds to carry out the work, in order to complete "within a reasonable time", then get the money off the defaulting leaseholders.

    Put this to the freeholder that he / she / it, has to finance the shortfall, or it's a breach of the lease, and litigation will follow in not done.

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  • leaseholder64
    replied
    The OP is trying to sell so doesn't have time to do RTM. In any case, that doesn't solve the problem that you can't cross-subsidise (or as others put it, steal money from other leaseholders) to cover the defaulter, so the default still needs to be addressed, which I believe requires cooperation from the freeholder, as I think only the freeholder can take legal action, and again will not be a quick process.

    This must actually be a common situation, as the is a question about work being blocked by defaults on the LPE1 form, used for solicitors' enquiries of freeholders and managing agents.

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  • paulamis
    replied
    They cannot be saying it needs painting every 3 years, if they get their act together and follow that schedule it will cost a fortune.

    The one about S20s expiring I think is "Jastrzembski vs Westminster City Council [2013] UKUT 0284 (LC)", great in theory, but in a small block you will be hammered by the S20 fees as there are not many to bear it.

    Is there a reason you cannot take the right to manage, is part comercial?

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