Service charge- what level of annual cost is 'reasonable'?

[Donkin]

What would be classed as a “Reasonable” amount of work to be carried out in any particular year.

For the last four years we have no work done on the property, as we were unsure of our responsibilities.

Earlier in 2005 we had the fire escape replaced.
15,000 paid by upstairs,
7,500 paid by downstairs
7,500 paid by me.
Every one happy at the cost.

Carrying on from this the garden needed new flagstones
1,200 paid by upstairs,
600 paid by downstairs
600 paid by me.
Not so happy as to the cost.

Now the front door is hanging off its hinges and the frame is rotten.
Total 2,000 I can force the issue due to security reasons.
Can I expect to decorate the hallway as when the door frame is removed as who knows what damp is behind it, but say 3,000?

This would entail next year to spread the cost
2,500 paid by upstairs,
1,250 paid by downstairs
1,250 paid by me.

We do not have a sink fund. As bills come in the cost is spread 1/2:1/4:1/4. Other houses in the street pay between 250 - 400 per month into the sink fund.

Would an LVT find me doing this work reasonable or would I need to allow extra time. Further works include painting the front elevation 5,000 and replacing the roof 6,000. The front is specified in the lease as every 5 years.

Upstairs have come into money, new kitchen, new Mercedes SLK, new windows, new cars for the kids, etc etc.
Downstairs is a Consultant Doctor.

If I outline the above to the Leaseholders and they go to an LVT will it be thought unreasonable?

[Poppy]

Crumbs!

Not surprised lessees were unhappy about new flagstones. My initial thoughts (although not previously expressed) was that you made non-recoverable improvements in this respect.

With regard to the front door, gauge their opinions as to how safe they feel. Repair it the best you can yourself now. Only replace it if you cannot (and I do mean absolutely cannot) repair it. If you do replace it - remember not to improve it. I would consider it unreasonable to re-decorate the whole hallway as a result of door works. Touch up any damaged areas, it’s not as if they live in the hallway.

With regard to the roof - when did you last repair it? How old is the roof? Who says you need a new roof?

With regard to the exterior painting - does it actually require painting? Would it be reasonable to stretch its life another two or three years? Have you tried simply washing the painted areas to smarten things up? In this scenario I very much doubt you would be sued for not painting the property.

Overall, any service charges which total more than £1,000 in any one year in my opinion should be planned for and notified a couple of years before the work is started.

[Donkin]

Thanks Poppy

The Garden had half concrete, half flags with a 1 1/2 in difference in level it was also damaged due to the fire escape works. I argued it was unsafe in the dark and a renovation of the area as allowed for. It worked as they paid.

Their leases state internals of each Flat must be painted/ papered etc every seven years. I replaced the carpet of the hallway at my own cost due to it being dangerous at the top of the stairs 5 years ago otherwise the hallway has not been touched in 25 years since conversion.

Their leases state externals must be painted etc every five years, the front was painted by the last Landlord in order to sell the house five years ago.

As I say an equivalent house two doors down pays 250 per month and 400 per month into the sink fund ie 3000 and 5000 per year would this be taken into account.

[LHNM]

My first question here would be - are you doing s20 consultation prior to these works? Both the fire escape and the flagstones would have required it and so will the door and any internal decorating. s20 consultation will give the tenants an opportunity to make their feelings known and you can take it from there.

If the hallway hasn't been decorated in 25 years I would have thought it was reasonable to undertake the works but whether the price of £3000 is reasonable for the work required is impossible to say. In any case you must do the s20 consultation for all of these works otherwise the tenants will only be required to pay the statutory minimum and you will be rather out of pocket.

[Robin]

The freeholder on one of my buy to let flats was ripping off myself & the other leaseholders & sending letters threatening court action if we didn't pay maintenance money. Only thing was he never did any maintenance !
The block became very tatty in the process.
Under recently introduced legislation, I managed to get 5 out of 9 leaseholders to agree to go the 'Right to Manage' route, as a majority is needed. Now all he gets is £15pa ground rent & via the 'right to manage' company we all have shares in, we have appointed a decent managing agent.
That sorted him out ;)