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rstark
07-06-2010, 16:43 PM
A bit of a sticky situation, involving really slow solicitors and bad service from the management company.

I closed on my leasehold flat at the end of August last year but through many mix-ups, change of staff and slow progress, my solicitors only managed to serve the notice of assignment recently (that's a 9+ month delay). I have now received a letter from the management company and been presented a service charge bill backdated since August of last year to the tune of £1,000+.

Back when I moved in around August I immediately called the management company to ask about service charges and I was told that I would have to wait till I received a letter from them (along with the contract I presumed). I was transparent the whole time about the solicitor situation and had been trying to seek out information from my management company to find out how much the service charges would approximately be and pretty much trying to offer them ways to convince them that I was the new owner and to allow me to make payment. They continued to send letters to my flat in the previous occupant's name.

I had to call many times to be referred around to different members of staff, who were usually short with me and rude, kinda sounding like they were being disturbed on their lunch break. Sometimes I was told I would get a call back and when I never heard back I ended up calling them back (this got tiring).

Eventually I was told that there was nothing I could do and that I couldn't ask them for any information because they would only talk to my solicitors regarding service charges (on the flip side my council were understanding and made it very easy for me to make my council tax payments and change the name over from the previous occupant).

In short, I had no idea what the contract for service charge entailed this whole time and to be honest, the job they had been doing isn't satisfactory (failing to sweep the communal areas properly or mopping when required - there is also a bigger issue of windows and roofing not being up to scratch too). This delay and the way they communicate has been really tiring and stressful on my part.

I am about to draft a letter of complaint to the solicitors and the management company so could anyone please offer any advice or tips on how to proceed with the management company?

I have read the LTA 1987 (including service charges in s20B) and was wondering if it is actually lawful for management companies to backdate service charge like this without presenting any sort of contract beforehand (since full dislosure should be at play)?

Cheers! :)

leaseholder001
07-06-2010, 18:23 PM
Does your lease say anything about how and when service charges should be paid?

What charges did you expect? Did you not get shown previous years service charge statements for your flat before you completed the purchase?

If any services are not being provided at all or to a high enough standard put this in your letter. Ask what their plans are in regard to any work that is required.

rstark
08-06-2010, 09:12 AM
Thank you for the reply. I will include all instances of insufficient service in the letter, along with plans for future work, so that is noted, thank you.

My leasehold report just mentions that service charges, repair works and buildings insurance is applicable and refers to schedules. They were meant to send me these schedules containing the information about what the charges and obligations are but I still have not received them (I have pretty much given up on them and will be filing a complaint now that the matter is concluded).

I was told verbally from the estate agent and the previous occupier what the amount would approximately be but this was not confirmed by anyone (agent, solicitor or management company) in writing. I definitely was not shown the previous year's service charge statements before completing purchase. I have only received the breakdown recently in the contact/bill I have been sent from my management company.

What are your thoughts?

leaseholder001
08-06-2010, 09:48 AM
If your lease doesn't specify any time limits on when payment for service charges can be demanded then they can ask for payment up to 18 months after a service charge is incurred.

jeffrey
08-06-2010, 10:06 AM
A bit of a sticky situation, involving really slow solicitors and bad service from the management company.

I closed on my leasehold flat at the end of August last year
Eh? What do you mean by 'closed'? Has the leasehold been closed at HMLR on term expiry? If so, you are not a leaseholder at all!
Please explain.

dominic
08-06-2010, 10:32 AM
Eh? What do you mean by 'closed'? Has the leasehold been closed at HMLR on term expiry? If so, you are not a leaseholder at all!
Please explain.

OP means "completed". The term "closed" is a more modern term meaning the same thing.

jeffrey
08-06-2010, 10:36 AM
'Closed' does not mean that in any English legal context that I've ever heard. A leasehold is 'closed' when the title at HMLR is expunged.

dominic
08-06-2010, 10:42 AM
'Closed' does not mean that in any English legal context that I've ever heard. A leasehold is 'closed' when the title at HMLR is expunged.

It is frequently used amongst lawyers in large law firms - but agreed, it is an Americanism and not a "native" English term.

jeffrey
08-06-2010, 10:56 AM
Good; so let's ban it.

rstark
08-06-2010, 12:29 PM
Apologies for the using the term "closed". Yes, an Americanism, but I did mean "completed" in the correct legal terminology.

So I guess all I can do from this point is challenge the service that they alleged to have been providing this whole time that I was unaware about till they supplied me with a bill recently?

Considering the terms in a standard contract (requiring amongst other things, full disclosure on what I am paying for), are they able to do this considering the effort I have put into trying to get more information out of the management company when I moved in and expedite any changeover in ownership?

dominic
08-06-2010, 12:48 PM
Good; so let's ban it.

I am a pragmatist, and would advocate using words which are accessible to most. I would never not use a word just because it sounds American, if it successfully conveys the meaning understood by the most people in the audience.

jeffrey
08-06-2010, 13:19 PM
You're right; but it doesn't: instead, it means just the opposite of what an American would mean.

leaseholder001
08-06-2010, 14:12 PM
So I guess all I can do from this point is challenge the service that they alleged to have been providing this whole time that I was unaware about till they supplied me with a bill recently?

If you think your service charges are unreasonable then you can apply to the Leasehold Valuation Tribunal (LVT) to make a decision on the reasonableness.