Non payment of service charges

[bomo45]

Hi,

I live in a leasehold flat in a block of 28 of which the majority are let by 'absent lessees' and some are not paying the service charges. This means that there is not enough money in the 'kitty' to carry out some improvements. The managing agents are doing a very poor job and we are thinking of changing them.

However, what can be done to resolve the issue of non payment of service charges? Would apreciate any advice on this please.

[Poppy]

Take a look at the Leasehold Advisory Service website www.lease-advice.org.

I guess you know that it is the responsibility of the freeholder to collect the outstanding service charges. Therefore you should insist that the freeholder fulfills its obligations under the lease to do everything legally possible to collect the service charge arrears.

By the sound of the problem, it will not be a quick fix. For your own sake and the future saleability of your flat, you simply must keep at the freeholder to do its duty.

Good luck.

[Poppy]

Having trouble posting.

[Donkin]

It is the Landlords responsibility to have any improvements done and it also his responsibility in the first place to pay for those improvements. How he recoups his outlay is up to him.

He pays and then takes the required amount out of the Kitty. If there is not enough money in the "Kitty" is not a concern of the Leaseholders. But you can bet if he is out of pocket he will chase the non-paying leaseholders quick enough.

Read your Lease and if it says the work needs to be done point this out.

The Agents are probably the ones liable but how do you change the Agents surely they are given the role by the Landlord. Most probably if you do change Agents they will be happy as their liability will be removed.

[SteveP]

Donkin,
It may be that the freehold is owned by a company which the tenants are shareholders of, in which case the tenants need to make sure that company does collect what is due.

One thing that concerns me slightly is mention of "improvements". Whilst I don't propose to go into any detail it is unusual for a lease to give the landlord to make improvements and charge them to the tenants. Normally tenants covenant to pay for a proportion of any necessary "repairs".

It may be that the original poster has just used the wrong terminology, but if not there is a risk that the costs of improvements cannot be recovered from the tenants. If the freehold company is owned by some or all of the tenants that will put the cat amongst the pigeons. The directors of the company may have been negligent (so does the company have directors liability insurance?) or the mamagement company may have been.

Be interesting to know more about this one.