Extortionate service charges - Freehold

  • Filter
  • Time
  • Show
Clear All
new posts

    Extortionate service charges - Freehold

    I bought a house three years ago and the already well know scandalous {name removed} are the service providers. The house is freehold but the covenant says I need to pay for service charges to this joke of a company.

    I have just received the prediction for this years charges and yet again they have given themselves a nice £2000 increase to their own 'management fees'.

    Can anyone tell me if this is 'the norm' or not as I plan on taking it to the first tier tribunal but want to know if its what all these disgusting rip off merchant companies charge or not.

    I have asked them time and time again for a breakdown of what these charges are for and why they are so expensive but they refuse to reply.

    As you can see their 'fees' equate to over 80% of the total bill which is disgusting! Similarly £3400 for 'accounts preparation fees'... so £3400 to stack a few invoices from gardeners together for the accountant!?!? WTF!?

    Any advice or views welcome.

    I hesitate to give advice because I think this needs a professional. My view is that it is b... Disgraceful with no apparent justification.
    I would look for someone giving free initial advice. At first sight, if you were not fully informed before you signed it might be considered an unfair contract. Presumably others have the same demands. Can you organise a meeting and decide collective action. Strength in numbers.



      Make a complaint to your MP.

      Enter LKP in your search engine and send it to them, maybe they will feature your story or be able to put you in contact with others in a similar position.


        Is there a provision in the lease for a management fee? I know there is a provision on my lease, which also says the management fee is at their discretion. The fact that they refuse tells you something. Rather than paying that monstrous sum, I would think hiring a solicitor to get the breakdown would be money well invested.


          You can add monitoring services into their fees.

          If it were a flat, then £400 pa is a bargain, as a house, does that actually insure your house/building too, if so, is it so bad?

          Actually if there are 100 units [as you pay 1%] the reserve fund seems very low, personally I despise the idea of reserve funds, but if you have to have them, £7.50 each pa is pointless.


            As the house is freehold there won't be a lease so in what format is the requirement for you to contribute made?

            What do your neighbours think?

            If there is a lease of some sort then you can take your issue to the Lands Tribunal (FTT) which may or may not resolve the issue, without a lease I'm not sure you have any redress.


              From what I gather, if your house is not part of an Estate management scheme (EMS) you cannot challenge service charges at the First-tier Tribunal.


              Latest Activity


              • Reply to License to Alter required to carry out repairs?
                by Lawcruncher
                I was thinking rather on the same lines which is why I asked the OP if he and his wife had signed the indemnity, hoping they had not so I did not have to consider the effect of the document. I have now considered it and concluded that it probably does not override the lease. However, there is still...
                01-08-2021, 18:37 PM
              • License to Alter required to carry out repairs?
                by APK
                Hi all,

                Looking for some advice. My wife and I recently bought a leasehold property in London. The property came with wooden flooring, and the lease specified no wooden flooring could be installed without consent.

                The lease states, with regards to the flooring issue:
                30-07-2021, 14:41 PM
              • Reply to Accounting for RMC
                by SHill
                I agree with Eagle 2 - As Director I am complying with the Companies Act 2006 to act in the best interests of the Company....
                01-08-2021, 14:41 PM
              • Accounting for RMC
                by SHill
                Would anyone be able to advise if a RMC can raise sales invoices to Directors, for property expenses that relate to their leasehold properties. The sales invoices raise are itemised in the Notes to the service charges at. 4. Transactions with Directors and 5. Related party transactions
                09-02-2021, 22:41 PM
              • Section 20 notice / repairing obligation
                by Grah8m
                Our residential long lease does not impose Landlord Repairing Obligations - rather underlease provides procedures enabling any one of convenantees (5 x underlessees - 1 x "Landlord"/Underlessor) may initiate repairing maintenance works and...
                01-08-2021, 13:59 PM
              • Reply to Accounting for RMC
                by eagle2
                If you were filing a false document, I would agree, however, you are not and there is a greater risk of being personally responsible for the ongoing penalties which are being incurred. You are acting consistently with your claim that the previous officers of the Company could and should have filed statutory...
                01-08-2021, 09:49 AM
              • Reply to Accounting for RMC
                by Section20z
                I'd be very wary of filing a false financial instrument particularly with the revelations about the other parties...
                01-08-2021, 08:35 AM
              • Reply to License to Alter required to carry out repairs?
                by Macromia
                It doesn't sound to me that this is an issue with what is/isn't demised.
                It sounds like the floor covering is within the demise, but the floor covering present at the time of purchase was one that the lease does not allow without the freeholder's consent.

                The indemnity that was signed...
                01-08-2021, 07:52 AM
              • Reply to Accounting for RMC
                by SHill
                [QUOTE=eagle2;n1164773]I I can send you a PDF by private message if you wish..

                Thank you that would be useful....
                31-07-2021, 20:37 PM
              • Agent going bust?
                by Granger
                Our 15 flats use an outside block management company. Their website has disappeared. They haven’t provided any financial updates for 6 months, but have made demands for services going back 4 years suddenly claiming that they are extras outside their normal services. We fear that they are in financial...
                31-07-2021, 08:52 AM