management company adding on costs

[lauradarlin]

My partner and I bought our 2nd floor leasehold flat on a new build development 2 years ago. Our block contains 8 flats with each of us paying around £60 per month to a property management company (put in place by the developer) who are responsible for the cleaning of communal areas, garden maintenance, buildings insurance etc. We also pay £100 per year ground rent to the same company.

We recently received a bill for £80 which seems to reflect the fact that the management company did not budget correctly for their expenditure this year. It appears that they are making a bit of a loss so are attempting to pass this cost on to us and are demanding the additional £80 one off payment be paid within a month.

Can anyone advise where we stand on this? I thought it was all part of good business management to budget for profit and loss throughout any financial period. Surely if every business could get away with hitting their customers with extra bills to cover losses Woolies wouldn't be in the state it is!!

I don't know my neighbours well but would love to gain some information to put to them if there is any possibility of either not paying this random bill or ideally getting rid of the management company altogether - wishful thinking I presume!!

I'd be really grateful if anyone could offer any help!!

[jeffrey]

Collective lessees' solutions:
1. RTM- Right to Manage. No purchase price- leaves ownershp of f/r where it is.
2. RTE- Right to Enfranchise. As 1, but includes purchase of f/r.

[lauradarlin]

Thanks for that, I take it for RTM the whole block would have to agree to this?

Any ideas on the one off £80 bill?
Cheers

[thevaliant]

Thanks for that, I take it for RTM the whole block would have to agree to this?

Any ideas on the one off £80 bill?
Cheers

Probably just suck it up for the moment. I manage our own block of seven flats, we pay £40 per month. A couple of years ago, I got the budget wrong (we spent money on unexpected minor repairs) and had to ask for an extra £30 per flat to cover the insurance. Didn't happen again as reserve fund started to build up to cover these items.

Personally, RTM or, better yet, RTE are the way to go, but you're going to have to get to know your neighbours very well!

Edit - You may think that £40 per flat is cheaper than your £60. It is, a fair bit, but that is because I'm a mug and take only £40 per month as salary. For that they get accountant/administrator and odd jobs thrown in for nothing.

[jeffrey]

I take it for RTM the whole block would have to agree to this?
No. RTM is exercised by lessees' new company.
See s.79 of 2002 Act: its membership must be 50% or more of lessees qualifying (or, if there's only two, both of them).