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Leasehold Service Charge - excessive deficit charges, what are my rights?

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  • Leasehold Service Charge - excessive deficit charges, what are my rights?

    Hi,

    I was wondering if someone could kindly give guidance to leaseholder rights on service charges.

    Basically, my managing agent has billed me for a further £1899 (on top of a service charge that is already 3000 a year with no logical explanation given for it being so expensive!) for a deficit dating back to 2012/13 year of accounts where the financial statements have "now been completed" (just short of the 18month cut off for what is deemed "given in reasonable time"!).

    The managing agent is always responsible for budgeting and application of the service charge, and payments are made every 6 months to cover the service costs. I do not therefore understand how they can justify claiming that they under charged us by 63%!

    I have searched the internet but struggle to find information on what rights a leaseholder really has to challenge the charges, beyond the following:

    You have the right to apply to the First-tier Tribunal to ask it to determine whether your lease should be varied on the grounds that it does not make satisfactory provision in respect of the calculation of a service charge payable under the lease.
    You have the right to write to your landlord to request a written summary of the costs which make up the service charges. The summary must-
    cover the last 12 month period used for making up the accounts relating to the service charge ending no later than the date of your request, where the accounts are made up for 12 month periods; or
    cover the 12 month period ending with the date of your request, where the accounts are not made up for 12 month periods.
    The summary must be given to you within 1 month of your request or 6 months of the end of the period to which the summary relates whichever is the later.
    You have the right, within 6 months of receiving a written summary of costs, to require the landlord to provide you with reasonable facilities to inspect the accounts, receipts and other documents supporting the summary and for taking copies or extracts from them.



    However i cannot find which governing bodies look into this matter or how to apply to the first tier tribunal (or what the costs are)?

    Is anyone able to advise if i have any legal grounds to challenge this?

  • #2
    Re: Leasehold Service Charge - excessive deficit charges, what are my rights?

    You should probably write to your leasehold company and ask them for a copy of the accounts. That would be the first step. Then, I would speak to my neighbours and see whether you can get enough of them to make a joint appeal to the tribunal. This does seem an excessive amount of money to ask for. So first step is to find out what it has been spent on.

    Comment


    • #3
      Re: Leasehold Service Charge - excessive deficit charges, what are my rights?

      I was actually going to ask a similar question, although the amounts in question are quite a bit smaller. We pay about £300 a year and have just received a letter asking for an extra £200.

      I am probably wrong but I always thought the service charge was it and the management company had to budget it accordingly?

      Comment

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