Management Agents excessive fees or not ?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Management Agents excessive fees or not ?

    My daughter and her husband owned a small studio flat with a mortgage, they bought it for £76,000.

    When the time to move on came, they discovered to their horror that the market value was £62,000 some £5,000 less than their outstanding mortgage.

    After months on the market, I agreed to buy the property off of them. This was done for £67,000 the total amount of their mortgage.

    Now we have finally got around to sorting out the Land Registry stuff and I am told by the Management Agents who reside in London and I believe are reasonably notorious on here for their fees require the following:

    1. Notice of Transfer £105.00

    2. Certificate of Compliance / Deed of Covenant / Licence to Assign £200


    They then go onto list a number of things which they require provided :

    Formal notice of transfer, All transferee details, Certified LR paperwork -- all of these are obviously fair enough


    Then they go onto list

    A copy of the Lessees title confirming the requirement in terms of the restriction
    An extract from the Lease specifying the Covenants relative


    My question now is - what exactly are they doing to justify what seems to me an exorbitant cost for changing a name and address on their records and issuing a piece of paper ?

    The Lease is their bog standard one, which I am perfectly aware they use throughout the country in their many properties managed - my feeling is that this Company based in N3 are trying it on.


    What should I do ? This should have been a simple conveyance which myself and my daughter could have arranged between us, however their requirements make this nigh on impossible and more expensive.

    #2
    Surely a few hundred quid and a bit of paperwork isnt a huge deal on top of 67 grand, if you were buying a property new youd pay for conveyancing/solicitors.

    Im not sure if these are fees that could be put before a lvt/ftt even so im not sure it would be worth the effort/expense. Many fh start lvt/ftt claims as they believe they are paying many hundreds more than they should every year.
    Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

    I do not accept any liability to you in relation to the advice given.

    It is always recommended you seek further advice from a solicitor or legal expert.

    Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

    Comment


      #3
      I disagree - if you believe in handing over money for poor service or for very little being done then yes accept payment.

      This company however has a track record of exorbitant fees and have been in front of many LVT's unsuccessfully - this I have found out from a legal forum since posting this query

      Comment


        #4
        On the contrary, I have challenged my FH every step of the way, and havnt paid any service charges for last six years as he has continually sent invalid demands and due to his incompetent solicitor has lost all chance of recovering the first 3 years worth. As a result I have been refunded several thousand

        It would appear that the fees are admin charges that can be challenged at a LVT/FTT (assuming that the amounts are not specifically stipulated within the lease), however the FH could claim that the notice of assignment and other legal bits needed the input of a professional/solicitor charging £100 - £200 an hour and that is what makes up the majority of fee.

        I'm not convinced taking into account LVT/FTT fees, the time spent and the paperwork involved (LVT's want it all in at least triplicate if not more) that you would actually save anything, have you found similar cases involving same FH/similar amounts ?
        Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

        I do not accept any liability to you in relation to the advice given.

        It is always recommended you seek further advice from a solicitor or legal expert.

        Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

        Comment


          #5
          Thank you for that comprehensive response.

          From research on several forums I have identified that {Mod - name removed} have on numerous occasions been involved in similar cases.

          If the LVT rules in your favour is the FH obliged to pay your costs / vice versa


          cheers

          Comment


            #6
            1. Notice of Transfer £105.00

            2. Certificate of Compliance / Deed of Covenant / License to Assign £200
            Looking at websites most often does little more than reinforce your prejudices ! In the spirit of giving actual advice

            1 What des the lease say about fees for notices. Unless the lease restricts them or specifies them then the fee is as they decide, and there is no right to refer it to the FTT.

            2 All of these depend on if the title has a restriction and the lease requires a deed or licence to assign.

            If they do, like it or not, nor if you question their need, it is not the simple transaction you imagine because of these restrictions and requirements in the lease, and you have to comply.

            The cost of a deed of covenant and licence to assign can be challenged and determined at the FTT but a restriction on title - Certificate of Compliance- cannot.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment

            Latest Activity

            Collapse

            Working...
            X