RMG demanding huge sums from leaseholders!

[Nathan251145]

RMG (Residential management Group) is the company that manages a block of 16 flats in Reading and charging around £100 per flat for maintenance/ground rent etc which though seems like a rip off to most is still fine. Now they are demanding £3000 (Three Thousand pounds) on the top of £100 per month for roof works!

Most leaseholders here can't pay these sums. RMG is sending threatening letters to us demanding money saying will involve Debt recovery and court action! Is there a way of regulating these actions by RMG or is it like RMG has all the right to demand any amount of money from us without any restrictions like a ransom? I would like to know my rights as a leaseholder in this matter.

Any help will be appreciated
Thanks
Nathan

[Crazy council]

Re: RMG demanding huge sums from leaseholders!

Hi
need a bit more details, on the setup. Arer the flats owned by the residence and RMG is the groundlease holders,

can you post up a redacted copy of your lease terms.

Usualy, if its a managment co, handeling the works for shared acsess, yes, you have some rights, possibly, depending on the set up, all the residence have the rights to change the managment company.

[Nathan251145]

Re: RMG demanding huge sums from leaseholders!

Hi
need a bit more details, on the setup. Arer the flats owned by the residence and RMG is the groundlease holders,

can you post up a redacted copy of your lease terms.

Usualy, if its a managment co, handeling the works for shared acsess, yes, you have some rights, possibly, depending on the set up, all the residence have the rights to change the managment company.

Flats are owned by residents. The landlord has appointed RMG for maintenance of properties and collection of ground rent. Some residents reported leakage in roof. RMG inspected and decided to re install the whole roof. The leakage can be fixed in a few(1-5) thousand pounds. Cost of re installing whole roof is £80,000. Doing the whole roof doesn't cost RMG a penny but a massive rip off for residents. RMG is adamant, demanding money which residents don't have!
Help please!

[Crazy council]

Re: RMG demanding huge sums from leaseholders!

It really depends on the lease wording, but usualy, you can ask for further quotes, and a breakdown of the quote

What caused the damage, Was in lack of maintanence, or could it be an insured incident How olds the roof ect, Whos responcable fo rthe building insurance ( structure )

I ask, becuase landlords/groundLLs usualy have a type of insurance called a block policy on these type buildings, the up side, block policy are cheeper, the down side, is usually massively higher initial contributions from the LL for any claim ( 10k and above )

So, its not usually in the landlords interest to claim from the insurance, as they may have to shoulder up to half the costs, am not saying that it could be the same in your case, but its worth noting.

As i said, wording of the lease is important, but, i would ask the other residents if they wish to have a further check to see if it actually needs replacing or can be repaired You should be able to do this for under £ 1000, and what was the cause of the damage. I will say though, fading memory hints that the are special terms relating to roof in your situation, but these should be in the lease anyhow

[Nathan251145]

Re: RMG demanding huge sums from leaseholders!

It really depends on the lease wording, but usualy, you can ask for further quotes, and a breakdown of the quote

What caused the damage, Was in lack of maintanence, or could it be an insured incident How olds the roof ect, Whos responcable fo rthe building insurance ( structure )

I ask, becuase landlords/groundLLs usualy have a type of insurance called a block policy on these type buildings, the up side, block policy are cheeper, the down side, is usually massively higher initial contributions from the LL for any claim ( 10k and above )

So, its not usually in the landlords interest to claim from the insurance, as they may have to shoulder up to half the costs, am not saying that it could be the same in your case, but its worth noting.

As i said, wording of the lease is important, but, i would ask the other residents if they wish to have a further check to see if it actually needs replacing or can be repaired You should be able to do this for under £ 1000, and what was the cause of the damage. I will say though, fading memory hints that the are special terms relating to roof in your situation, but these should be in the lease anyhow

Thanks for the reply. The buildings were built in 1984, so not very old. Does anyone think the roof has reached the end of it's life? I don't think so. There is certainly building insurance which we all have been paying for every month for last 30 years. The problem is it doesn't doesn't cost RMG(managament company) nor the Landlord a single penny to get the full roof done at the leaseholder's cost!

[Amethyst]

Re: RMG demanding huge sums from leaseholders!

Have they given you copies of the quotes for the work ? Have you checked out the companies involved. Directorships etc.

[TheUnderDog]

Re: RMG demanding huge sums from leaseholders!

It would be useful to know which stage of the consultation process you are at, I.e has this amount now been formally demanded, have you been provided information on various tenders for the works ect.

In a nutshell yes they have the right to charge such amounts, depending on the terms of the lease, But there is a strict process they must follow if the amount charged would be more than £250 per leaseholder

[LJS]

Re: RMG demanding huge sums from leaseholders!

Hiya, I am aware that if you go to the Leasehold Advisory Service they can give you advice on leasehold flats. You are also able to form your own committee to replace RMG, or form your own Right to Manage company, however you need to get 50% of the leaseholders in the block to join the committee. The Leasehold and Commonhold Reform Act 2002 protects leasehold flats from escalating costs, please have a google and see what you can find to support your case :-)

I am having a problem with RMG also but we are leasehold housing and there is no legislation written to protect leasehold houses yet. So i have started a petition with the government! So please if anyone has 2 minutes support it !!

https://petition.parliament.uk/petitions/129353