Property service charges & leaseholder rights

[GingerNinja]

I live in a large communal block of flats, where the annual service charge & ground rent has been about £2K / year....

...just had the new bill through, and they've decided to put it up to just over £2500/year, which is a horrendouns increase - anyone know if there's any legal comeback to this?

[bga]

IIRC you can change the maintenance company to one which will do it more favourably. I believe you are also able to see a full set of accounts to see exactly why they need to increase the charge.

[MannyA]

There is somethong called the leaseholders Valuation Tribunal who look at these things and make sure they are legit and not just lining the pockets of their mates.

[superlightr]

too few details to comment

Why do you feel this is too high?

Have you gone to the AGM?
What work is needed/planned to be done?
Have you seen a copy of the income/expenditure accounts for last year and budget/forcast for the next?

[GingerNinja]

superlightr said:

too few details to comment Why do you feel this is too high? Have you gone to the AGM? What work is needed/planned to be done? Have you seen a copy of the income/expenditure accounts for last year and budget/forcast for the next?

It's too high because 25% in one jump is pretty shocking and there's nothing to stop them doing it again next year - this means we're suddenly taking an extra £300K/year for the whole building.

I'd question the quality of the management company.

[sheepy]

If you really think you're being ripped off (and most cases you probably are), then you should investigate the Right-to-Manage process. Talk to the leasehold advisory service (www.lease-advice.org).

At my flats, we went down this route (and also sued for £13k via the LVT). We've been running the place for 18 months, and our bills for 2006 are still lower than those for the final year of the Freeholder's appointed agent running things.

Feel free to email me if you want to discuss it further. BTW, who is your freeholer and current agent?

Sheepy

[maxf]

You need to look into it a little deeper - find out why there is the jump. They may be faced with replacing the roof in 5 years time and are setting up a sinking fund, for example?

[rude-boy]

As said there is a chance that they are trying to soften the blow in future years as they know that there are major works around the corner and that you would be even less impressed at a £5k service charge one year...

On the other hand they might be 'doing you over' -

You need to dig deeper before wading in with the 'robbing barstools' approach

[pdV6]

Also, you need to know what proportion is for ground rent and what is service charge.

[superlightr]

GingerNinja said:

superlightr said: too few details to comment Why do you feel this is too high? Have you gone to the AGM? What work is needed/planned to be done? Have you seen a copy of the income/expenditure accounts for last year and budget/forcast for the next? It's too high because 25% in one jump is pretty shocking and there's nothing to stop them doing it again next year - this means we're suddenly taking an extra £300K/year for the whole building. I'd question the quality of the management company.

so apart from your 'gut' reaction it just too high, have you had the chance to find the answers to the rest of my questions?

may be able to help with further info.