Leasehold remortgage

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    Leasehold remortgage

    I’m in the process of remortgaging my leasehold property. I’m in dispute with the managing agents over historic section 20 notice of intention failures for two sets of major works and for me not paying into a contingency fund, for which there is no provision in my lease. The arrears equal £3k. Apart from that, I have paid all ground rent, service charge and reserve fund. I have actively tried to resolve this with managing agent but they refuse to respond.

    So, do you think I’m just going to have to pay up, regardless of legitimacy of arrears, simply to get them to ‘ok’ my remortgage (Notice of Charge etc)?

    Thanks in advance.

    What's the difference between a reserve fund (which you say you paid) and a contingency fund (which you say is not provided for in lease)?

    Who else paid for stuff - we presume the other lessees in the building are out of pocket somehow?

    What timescale -- was this 10 years ago, 3 years ago or now?

    Why did you not take it to FTT if you thought not appropriate?

    With so few details it is hard to answer.


      A reserve fund is for major works and is provided for in the lease. However, agents are trying to take £1500 for a contingency fund which they say covers risk assessments and surveys although assessments/surveys that have been undertaken have also been demanded under separate headings in service charge. So the agent just keeps this excess money in an account. There is no provision for such a fund in my lease so I am contesting this.

      The other 8 flats in the block are owned by the freeholder so I am at a disadvantage. They also want me to sell but offered me £130k less than it’s market value.

      The various overlapping major works projects have been since 2017. They have awarded contracts to the higher bidder, costing the leaseholders £2.9k more. The latest issue is they sent two section 20s for different works (commonways redecoration and fire precaution works) but issued one statement of estimates for both works. They then realised waited 8 months for preferred decorators to set up a new company to carry out fire works and then waited a further 10 months before instructing them to go ahead with fire works despite my written observations, which they ignored.

      I have tried to resolve this via their in house complaint procedure. But they ignore me.

      I want to remortgage but I know they now have my head over a barrel.

      Any thoughts on what I should do next would be greatly appreciated.


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