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We are the Leaseholders in a 16 flat development. The managing agents are the secretaries of the limited company that manages the building. The Leaseholders are shareholders in the company. The agents/secretary has proposed a service charge increases of 30 % for 2024-2025. We have asked for an explanation of why the increase has to be so large. We have received a partial answer.. with them explaining why certain aspects of the budget need to increase by huge amounts, but no explanatiobs for other parts of the budget that have also went up by a huge %. Has anyone got any suggestions on what we can do to make the Managibg Agents increase the budget by a lesser,more reasonable amount? Any help appreciated.
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Old fashioned negotiation is your answer.
Assuming the management company is not in a minimum term with the agents, then you can always suggest to them that if they are unable to reduce their fees, then the company may have to shop around for a better an alternative agent, particularly as they haven't explained or justified increases in other areas of the services.
The agent will either reduce their fees or not, and then its up to the company to decide what to do next. A 30% increase year on year seems to be a significant jump, but then again the increase may bring it in line with fees stated by similar agents doing similar work.If you have a question about the voluntary termination process, please read this guide first, as it should have all the answers you need. Please do not hijack another person's thread as I will not respond to you
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Hi LONDONBEAR
Welcome to LB
As you are shareholders in the 'Limited Company', there is clearly an 'imbalance' as you don't have a 'say so' in service charge increases. Also, you aren't getting all the information you have requested, when they haven't provided any reasons for not providing the information. You could suggest that if they don't take shareholders concerns onboard and reduce the 'service charges' you will instruct external agents to look at the proposed 'service charges' and the 'validity' of those charges.Comment
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Thanks, Echat11
What do you mean by 'external agents' ?Comment
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Companies that can audit / check the work carried out by the 'agents / secretary', see if the charges are reasonable.Originally posted by LondonBear View PostComment
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