What's included in maintenance charges?

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  • GeeMan16966
    replied
    Originally posted by Moderator2 View Post

    It wasn't when you incorrectly posted in the Residential Lettings forum, but it is now that I have moved it.
    Thank you for that. I will be more careful in future regarding categories.

    Leave a comment:


  • Macromia
    replied
    Originally posted by GeeMan16966 View Post
    Thank you, I am the leaseholder of an English (flat) and just joined the Property Management Company as director and Company Secretary and other new residents/shareholders are asking the same question.
    Originally posted by GeeMan16966 View Post
    Jon66 the lease does not detail what’s included in the service charge.
    Originally posted by GeeMan16966 View Post
    ...the existing directors will not provide the information to me. The files I have been given and going over during lockdown stop at 2010!
    It sounds like you have a problem that could potentially end up costing you.

    Firstly, the items that can be included as part of a service charge have to be detailed in the lease (with very few exceptions). If the lease does not make provision for the recover of particular costs, then any leaseholder who does not want to pay those costs can challenge this at a tribunal - and may have those costs disallowed if they win.

    Since leaseholders can take the freeholder (or in your case the 'Property Management Company') to a tribunal to challenge costs, and can potentially challenge costs several years after they have been paid even if they didn't raise any objections at the time, it is essential that the person/company who service charges are paid to is able to justify the charges.
    Even if the leases do not specifically require annual summaries of how service charges have been spent to be supplied to leaseholders, it is considered to be best practice to supply an annual summary, and any leaseholder can request provision of this, Leaseholders also have a legal right to see the invoices supporting service charges (under specific circumstances).
    If a leaseholder now challenges past service charges, the FTT may even instruct the PMC to provide several years worth of summaries and invoices.

    Your company articles might also be relevant, because these may allow additional charges to be demanded - but these should not be included as part of the service charges unless the leases allow it.



    The problem that you have is that, if one or more leaseholders successfully challenges any of the past (or future) costs that are being covered by services charges, they will have to be paid back the money - and company directors (+the secretary) can potentially be held liable for financial losses. Even if directors are protected from paying out money themselves, having to return money that has already been spent would likely bankrupt the Management Company if they don't have another way of recouping the losses (the money won't be able to be recovered by increasing future service charges).
    If the other directors cannot, or will not, provide details of how service charge money has been spent, and provide supporting invoices, you should be looking at finding support from other leaseholders to have them removed as directors - and potentially considering whether they should be reported for suspected fraud.

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  • Moderator2
    replied
    Originally posted by GeeMan16966 View Post

    Is this NOT the right forum section?
    It wasn't when you incorrectly posted in the Residential Lettings forum, but it is now that I have moved it.

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  • GeeMan16966
    replied
    Yes because the existing directors will not provide the information to me. The files I have been given and going over during lockdown stop at 2010!

    Leave a comment:


  • Milhouse
    replied
    Originally posted by GeeMan16966 View Post

    Thank you, I am the leaseholder of an English (flat) and just joined the Property Management Company as director and Company Secretary and other new residents/shareholders are asking the same question.
    Please correct me if I am wrong, you have joined the management company as a director and company secretary and are asking on this forum what is included in the service charge?

    Leave a comment:


  • GeeMan16966
    replied
    Originally posted by Jon66 View Post
    Check the lease
    Jon66 the lease does not detail what’s included in the service charge.

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  • Jon66
    replied
    Check the lease

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  • GeeMan16966
    replied
    Originally posted by theartfullodger View Post
    By writing initially to whoever is sending you the bills. Are the charges coming from council, freeholder, management company, whoever, please?
    Thank you, Management Company are sending out the charges and embarrassing I am the new Company Secretary.

    Leave a comment:


  • GeeMan16966
    replied
    Originally posted by Gordon999 View Post
    Is the property in England or Wales ? Leaseholder pay annual service charge if the property is a flat and get an annual audited service charge account. . Are you a leaseholder ?
    Thank you, I am the leaseholder of an English (flat) and just joined the Property Management Company as director and Company Secretary and other new residents/shareholders are asking the same question.

    Leave a comment:


  • GeeMan16966
    replied
    Originally posted by ash72 View Post
    You should put your questions in the right forum
    Is this NOT the right forum section?

    Leave a comment:


  • Gordon999
    replied
    Is the property in England or Wales ? Leaseholder pay annual service charge if the property is a flat and get an annual audited service charge account. . Are you a leaseholder ?

    Leave a comment:


  • ash72
    replied
    You should put your questions in the right forum

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  • ash72
    replied
    You should get the breakdown of the service charge in a statement with each aspect itemised and the cost split according to the % on the lease per property.

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  • theartfullodger
    replied
    By writing initially to whoever is sending you the bills. Are the charges coming from council, freeholder, management company, whoever, please?

    Leave a comment:


  • GeeMan16966
    started a topic What's included in maintenance charges?

    What's included in maintenance charges?

    How can I find out what is included in the monthly maintenance charge fee? Thanks in advance.

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