Service charge dispute; inadequate information provided

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    Service charge dispute; inadequate information provided

    We have on-going problems with annual account charges from our Leaseholder/Management Company. 2007 accounts were incorrect, we have stated "we will pay the account once anomalies have been sorted". The Leaseholder/Management Company has written to our mortgage lender stating we owe this money and added £180 interest to the £686 bill outstanding since July 07. We have sent registered letters/made attempts to speak/meet with the Leaseholder/Management Company he is never available, does not return calls. Meeting scheduled for 28.8.08 but feel negative he will be there. Spoken to Mortgage lender explained the situation, mortgage payments are not o/standing therefore they are ok but we are looking for advice as to how to deal with this man! He is also selling car parking permits to local companies that are for residents of the flats, this is not transparent in the annual accounts. Any advice on how to deal with this peson would be greatly appreciated. Many thanks for your time in reading this.

    #2
    info required

    Originally posted by Lilacollie19 View Post
    Meeting scheduled for 28.8.08 but feel negative he will be there. is also selling car parking permits.
    Before anyone can probably give advice :-

    A previous post said "I sold part of my garden 7 months ago", so we assume you also have a flat, that you rent out ? to which this question applies.

    Leaseholder/Management Company, he is never available you say, so who is the leaseholder ? and is the Leaseholder "The" Management company.

    There are ( legal ) rules the Leaseholder/Management Company have to abide by.
    I assume the lessor / leasholder is also the contact for the managing company. ( A Managing agent would be one that is instructed by the Managing company to look after the property, and could be an estate agent )

    In the meantime, I would pay what you think would be a reasonable charge, at the meeting, ( at least you show willing, even if "The principal" - of not paying, is compromised, The bill IS outstanding for over a year, so some payment should have been paid, if only to appease the Company ) and thrash out the anomalies later with advice from here.

    Are there more parking spaces than residents ? (a) is each flat guarenteed a parking space in the lease given to the resident of the Flat ? or is it, (b) "There are parking spaces available to use, if not occupied", sort of notation.

    Sorry to ask these questions, but different advice will be given for each scenario.
    Above, if (a) then only excess parking spaces may given away via parking permits.
    If (b), then they may be entitled to fill the parking spaces via parking permits.

    etc etc etc.

    R-a-M

    Comment


      #3
      Originally posted by Lilacollie19 View Post
      We have on-going problems with annual account charges from our Leaseholder/Management Company. 2007 accounts were incorrect, we have stated "we will pay the account once anomalies have been sorted". The Leaseholder/Management Company has written to our mortgage lender stating we owe this money and added £180 interest to the £686 bill outstanding since July 07. We have sent registered letters/made attempts to speak/meet with the Leaseholder/Management Company he is never available, does not return calls. Meeting scheduled for 28.8.08 but feel negative he will be there. Spoken to Mortgage lender explained the situation, mortgage payments are not o/standing therefore they are ok but we are looking for advice as to how to deal with this man! He is also selling car parking permits to local companies that are for residents of the flats, this is not transparent in the annual accounts. Any advice on how to deal with this peson would be greatly appreciated. Many thanks for your time in reading this.

      Best to get support from 50% + leaseholders and use the RTM company to take control over your site. Which Town/city are You located ?

      Comment


        #4
        Originally posted by tenant29 View Post
        Best to get support from 50% + leaseholders and use the RTM company to take control over your site.
        Good advice, but the matter in hand is more urgent.
        Not everyone wants the hassle of running a management company, ( been there, done that ) and this wont happen before the 28th.

        Bills are unpaid, Parking spaces disapearing, accounts in error, needs advice before 28th.
        But more info required, but advice at present is to see if meeting transpires, put concers over with force and authority, and suggest if person does not turn up, or there is a stalemate, they can be taken to task via Companies Act, / Landlords and tenants act violations, and also - maybe - Estate agents code of practice, if estate agent is the managing agent / company, - no need to quote specific sections, just that you let the Lessor / Lessee / Managing agents that you know your rights, even if not identified to them.

        R-a-M

        Comment


          #5
          Service charge dispute; more information

          Hi folks thanks for the replies.

          Additional information follows:

          Yes this is a rental property ans i not associated with the previuos thread.

          Leaseholder also owns and runs the management company.

          The lease entitles us/our tennant to two car parking passes, in theory one for the occupant and one for visitors. I am not sure regarding what the lease says about selling spaces, however I will check before the meeting. In principle I don have an issue with this, however I think the income should be recorded on the accounts of the property. Currently it is not.

          I have made enquiries with one of the companies which purchases the permits and have concerns regarding the final destination of the monies recived.

          Also the contingincy fund which is in excess of £25k is accruing no interest for the leaseholders.

          The management fee I think, is excessive and I have asked to see timesheets showing what his staff have been involved with on the property.

          Hope this additional information helps

          Once agian thansk for your attention to this.

          Comment


            #6
            Originally posted by Lilacollie19 View Post
            The lease entitles us/our tennant to two car parking passes, in theory one for the occupant and one for visitors. I am not sure regarding what the lease says about selling spaces, however I will check before the meeting.
            It's essential to decide their status. Is each space:
            a. part of what a lease demises (with or without a flat);
            b. not demised BUT subject to a specific lessee's easement allocation, for the lessee (or lessee's guest) to park in the space; or
            c. not demised, nor subject to easement allocation, but just generally available on a first-come-first-served basis.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment


              #7
              Additional

              Yes This Is A Rental Property
              Leaseholder Also Owns And Runs The Management Company.
              The Lease Entitles Us/our Tennant To Two Car Parking Passes.
              So If Every Flat Has 2 Passes, Are There Twice As Many Parking Spaces As Flats. ?
              If there are more spaces than residents that have cars, then if the Leaseholder owns the grounds, he can --probably-- earn extra money for himself, by letting out parking spaces.
              If he owns land, with spaces not reserved for tenants/owners, then he does not have to give- you or others, profit from excess spaces. ( Just an opinion, as i don't know how many spaces there are or if land has extra spaces, or what is in everyones lease ) see my #2 a+b ( Jeffs abc+d)

              Here, we have limited parking, and at present it works fine if one flat has one car, they have one parking space, if one flat has 2 cars, they have 2 parking spaces, but this is on a driveway with a max number of car spaces available.

              I Think The Income Should Be Recorded On The Accounts Of The Property. Currently It Is Not. I Have Made Enquiries With One Of The Companies Which Purchases The Permits And Have Concerns Regarding The Final Destination Of The Monies Recived.
              See above re- land owner.
              Also The Contingincy Fund Which Is In Excess Of £25k Is Accruing No Interest For The Leaseholders..
              Our Bank account is an "Association" bank acount, otherwise we are charged for having a business account, so you have to decide if you want 5% charges for a business account, or no charges ( and no interest ) for an Association account.

              The Management Fee I Think, Is Excessive And I Have Asked To See Timesheets Showing What His Staff Have Been Involved With On The Property.
              If you are entitled to receive annual accounts, you can ask for a summary of the accounts at any time ( may cost you ), or wait to see final accounts.
              How many flats in total are there ? and and what is the maintenance charge per month ( it matters ) 5 flats in Victorian house ranges from £ 70 to £ 130 per month, and includes everything ( up North - of course, where your money goes far further up here )

              I assume there is only one director ? of the managing company, and flat owners are not directors of the management company, and you dont have voting rights at an A.G.M. ( ref trying for a RTM takeover ?)

              Sorry for questions to your questions, but I have PM'd you my phone number, so as to get a clearer picture, - if not fo me, but for others to advise when all facts known.

              R-a-M

              Comment


                #8
                There is some confusion in your posting -

                Freeholder is the party which owns the entire building , hallways and external grounds etc.
                Leaseholder is the party which has a longterm lease of 99 or 125 years from the freeholder to use a particular flat. Leaseholder pays annual ground rent to Freeholder and service charge to Management Company which is run by Freeholder.

                So I guess you are the Leaseholder. You complaint is against the Freeholder/ Management Company ?

                Comment


                  #9
                  Originally posted by tenant29 View Post
                  So I guess you Lilacollie19 are the Leaseholder. Your complaint is against the Freeholder/ Management Company ?
                  Please subsitute Freeholder in my replies, in lieu of leaseholder ( Slip of the pen as L19 used leaseholder in questions, but my answers of a generic nature remain the same )

                  R-a-M

                  Comment

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