Splitting Block Management and Service Charge

[davidyepes]

I live in a block of six flats that is part of a bigger block of two other blocks of six. The management have decided that they are splitting the management of each block and managing separately and the service charge claimed for each block will be used to manage that individual block.

The reason being is that some in a block pay and others don't - this is because many see the management as poor to say the least - if you are in a block where all are paying the charge your block would be looked after and decorated etc - that's what they say but hasn't happened since this change took effect three or more years ago.

Is this allowed ? I find it hard to swallow if many do pay the charge they still suffer because others don't pay.

[Section20z]

They need funds to carry out maintenance so people need to pay.

[AndrewDod]

Can't see that they can just do that. The flats have contracts, part of which is that they share costs with ABCDEF not with ABC. You can't just "decide" to change those contracts.

If people are not paying then they must get taken to court. If that does not happen then you must apply to have the building managed by the courts (FTT Appointment of a manager - but choose that manager with great care as many are crooks).

[jrsteeve]

Unless the leases have been varied the apportionments are set, any change wouldn't be enforceable of challenged. If there are non payers they need to be dealt with accordingly via a solicitor ideally.

[Macromia]

Unless the leases have been varied the apportionments are set, any change wouldn't be enforceable of challenged.

Whether or not the RMC can choose to manage each block separately, instead of dividing the costs between both blocks, may depend on what the leases say - and potentially on how long the change has already gone unchallenged.

If, for example, the leases all say that "a reasonable proportion" is to be paid, and aren't specific about how costs should be split between the two blocks, it might be possible to argue that the new way of dividing service charges is reasonable and in accordance with the terms of the lease.
If changing the way the blocks are managed can be argued to not breach the leases, I would think that consideration would have to be given to whether an 'estoppel' would apply - either to prevent the RMC from changing to managing the blocks separately, or (if the change happened long enough ago, without being challenged by leaseholders) if the leaseholders would be considered to have accepted the change.
I would expect that any leaseholders who are not paying could not be considered to have accepted the change.

If there are non payers they need to be dealt with accordingly via a solicitor ideally.

Agreed - although the RMC should chase payment themselves before engaging a solicitor (especially if the leases don't allow solicitors costs to be charged to the individual leaseholders who are in default.

Non payment may be an indication that the leaseholders have objections to the way that the RMC is operating - and if the leases clearly state that the two blocks should be managed as one, with all costs shared, demanding service charges for the blocks separately may mean that the demands aren't actually payable.