Taken over RTM however previous company are witholding funds and documents

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    Taken over RTM however previous company are witholding funds and documents

    Hi all,

    I secured Right to manage on a block of 6 flats with an agreed takeover date of 10/1/2020.

    Since that date the previous company have only sent partial funds and are ignoring emails and letters to send the documents required for the running of the building. we paid them £6000 on Jan 2nd to cover the first 6 months service charge and they have only sent £1200 to our new management company. There is also £7000 in reserve and a £1452 overpayment from last year that has not been sent.

    Our building insurance renewal is due at the end of the month and we do not have the funds to make the payment as firstport is holding the money.

    Threats of legal action, complaints and phone calls do nothing. What are my next steps? what is the law regarding the handover of documents?

    General documents are covered by serving a formal section 93 Duty to Provide Information Notice. Landlord has 28 days to provide but not until after the acq. date.

    Landlord or his agents must otherwise transfer all uncommitted service charges on or soon after the acq date - no buts. No notice or request is required.

    The Act provides for an applciation to the FTT to sort it out. If the landlord is uncooperative, your evidence needs to be gathered somewhat blind - most recent annual accounts and copy invoices for service charges etc. Perhaps even witness affidavits as statements of truth from all flats that they paid £X and had no arrears etc.

    Watch out for the old debtors causing no reserves left. Can be a joke, service charge accounts. Debtors should cause unpaid creditors if full income receivable budget spent anyway, not vanish the reserves cash transferred - as it should be - to a separate interest earning deposit account.

    No idea what costs arise under new FTT regime. Seem to recall under old LVT this would be a no fee case?

    Do not read my offerings, based purely on my research or experience as a lessee, as legal advice. If you need legal advice please see a solicitor.


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