Multiple failed section 20 repairs and issues with RMC

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    Multiple failed section 20 repairs and issues with RMC

    Hey,

    In February of 2020 I purchased a top floor property in a Grade 1 listed building in the north west. The RMC owns the head lease, we have a managing agent providing services and day to day management of the building. We also have a recognised residents association that operates in the building.

    Only certain lease holders who purchased shares in the RMC when it was formed in 2018 have voting rights for some background.

    I need some advice on some issues a number of leaseholders have experienced and continue to experience.

    There has been issues with the roof and water ingress for the top floor residents for over a decade and it’s bad. I’ve only lived at the property for just over a year have experienced this myself. The RMC has issued multiple section 20s for roof repairs and each one has failed and not resolved the issues with water ingress. The RMC and managing agent are now proposing another section 20 and intend to ask residents to contribute even more money to the repair of the roof, is there anyway we can overturn this given multiple section 20s have failed in the past and what options do we have as leaseholders? The RMC are not playing ball at looking at alternatives and are refusing to share any reports from contractors and surveyors so leaseholders can at least try to understand the issues better.

    Service charge costs are also soaring with little indication of slowing down, in the last year alone they have increased by 7%, which means we are now paying some of the highest service charges in the country outside of London. I’m led to believe the RMC has a statutory obligation to ensure that service charges are fair and reasonable but they aren’t, the services we receive are few and far between for the amount we pay (I’m currently paying in excess of £10k per annum) Since the RMC has taken over the head lease, service charges have increased by around 25% and as I’ve said there seems to be no slowing down of these charges increasing. Is there anything leaseholders as a collective can do to stop this madness?

    The directors of the RMC, who are also residents and leaseholders, are routinely acting on behalf of the residents association too, performing duties I would expect would be up to the elected committee of the RA. Should the landlord company be doing this? They are interfering with democratic process and do not allow the RA to function as it should. In our lease it states we must join the RA, pay a small annual fee and the constitution states it has to be independent of the landlord. Would the landlord interfering be a breach of the lease?

    The directors of the RMC are also providing services alongside the managing agent and in some ways acting as the property managers, even though this is contracted to a managing agent. Should the directors being doing this?

    We as leaseholders have formed a small action group to try and remedy these issues but we are unsure of how to proceed effectively have been looking into a FTT, especially for the failed section 20 repairs.

    Any advice would super welcome, thanks in advance.





    #2
    10k Per annum in the North West sounds completely extortionate. Unless it's a multi million pound pent house but judging by the leaking roof I highly doubt it.

    I thought the situation in my block was bad but yours sounds shocking.

    I am not an expert on this but you could possibly look into the 'Appoint a Manager' process which you would apply to with the first tier tribunal. This will take the managerial powers away from the RMC and give it to an appointed manager of your choice, supervised by the FTT.

    Comment


      #3
      It is entirely shocking, we have wheelchair bound disabled residents here too who are suffering really really bad water ingress and so many of the RMCs decisions are causing these guys a lot of distress.

      I think a FTT is the way to go with this and vote of no confidence in the current directors.

      Thanks for your response!

      Comment


        #4
        Hi,

        This is definately a RMC and not a RTM?

        You also mention a residents association, are you members of FPRA?

        https://www.fpra.org.uk/

        There are certainly better alternative routes you could look at prior to the 'appoint a manager' process.

        Comment


          #5
          Sounds like you need a new roof, rather than a repair, doesn't it?

          Comment


            #6
            You have the right to have the service charges determined by the FTT unless of course you have already agreed them. Pay future charges 'in dispute' this way you can still make an application to the FTT individually or collectively with other leaseholders. The FTT can determine whether the charges are payable under your lease and if they are, whether they are reasonable.

            Service charges demands must include 'Summary of Tenants Rights and Obligations...' or they are not payable.

            Have you or any other leaseholders nominated contractors during the section 20 consultations?

            Could you and others look into purchasing the freehold?

            Consider other options before applying for a manager to be appointed as this does not always improve matters and can increase costs to leaseholders.

            Let us know more.

            Comment


              #7
              #3 If there is a vote of no confidence by shareholders can directors who are also shareholders vote ?

              Comment


                #8
                The landlord company is definitely a RMC.

                The service charges are spiralling out of control, from 2018 when the RMC was established, service charges have increased collectively by around £100k, a significant percentage and services are not improving as a result.

                On top of the service charges we currently have 5 section 20s being proposed, one included for the repair of the roof.

                Given that multiple section 20 repairs have failed for the repair of the roof what options do we have as leaseholders? It seems absurd we keep being asked for money to have these issues fixed but the problems just keep reoccurring.

                Comment


                  #9
                  Originally posted by Leaseholder93 View Post
                  We also have a recognised residents association that operates in the building.

                  The RMC are not playing ball at looking at alternatives and are refusing to share any reports from contractors and surveyors so leaseholders can at least try to understand the issues better.

                  The directors of the RMC, who are also residents and leaseholders, are routinely acting on behalf of the residents association too, performing duties I would expect would be up to the elected committee of the RA. Should the landlord company be doing this? They are interfering with democratic process and do not allow the RA to function as it should. In our lease it states we must join the RA, pay a small annual fee and the constitution states it has to be independent of the landlord. Would the landlord interfering be a breach of the lease?
                  The landlord company is a RMC of which you are not all members, however there is a recognised residents asociation that you all are required to be members of under your leases.

                  Have you looked into the FPRA?

                  Also google 'residents association constitution' and under 'people also ask' click on 'what can a recognised residents association do?'

                  Comment

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