Freehold for a site with 21 flats was sold to a private investor who did not realise until after the purchase, one of the property is on a shared ownership
Service charge sky rocketed upon acquiring. They were taken to the tribunal and the amounts where revised.
They continued mismanaging and over the past 8 yrs, no service charge statement were sent for 4 of those years. However a flat amount was still being made by the leaseholder while they dispute the continued increase in service charge and to obtain records of the missing service charge records. After 8 years, full records including receipts for the missing period have now been received.
Leaseholder has noticed that some are invoices from a company to the landlords. However the landlord is the director of the company issuing invoices and the director of the company receiving and paying invoice. The freeholder has also recruited 4 full time staff that are being used to service the property including cleaning communal areas and gardening. They’ve also bought all equipment required to do the job and recording a rental figure every 3 months for use of equipment to service the site. Prior to all of this, these jobs were sourced from an external company.
Is what the landlord/freeholder doing right or legal?
Service charge sky rocketed upon acquiring. They were taken to the tribunal and the amounts where revised.
They continued mismanaging and over the past 8 yrs, no service charge statement were sent for 4 of those years. However a flat amount was still being made by the leaseholder while they dispute the continued increase in service charge and to obtain records of the missing service charge records. After 8 years, full records including receipts for the missing period have now been received.
Leaseholder has noticed that some are invoices from a company to the landlords. However the landlord is the director of the company issuing invoices and the director of the company receiving and paying invoice. The freeholder has also recruited 4 full time staff that are being used to service the property including cleaning communal areas and gardening. They’ve also bought all equipment required to do the job and recording a rental figure every 3 months for use of equipment to service the site. Prior to all of this, these jobs were sourced from an external company.
Is what the landlord/freeholder doing right or legal?
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