Adjustments by residential managing agent to TP1 regarding estate costs

[hyposmurf]

I pay a fee for a management company to manage the new/maintenance works to estate areas on the development upon which I live. The fees have almost doubled due to some new works and also new charges that the management company (MC) seem to have come up with. What I am concerned about is the allocation of the charges.The MC have split a charge for maintaining a gate away from the estate charge, so that only those residents using the gate will be charged for the gate works. The TP1 states that the gate forms part of the estate charge and that each resident should pay a proper proportion towards the costs. It appears that by the MC splitting the gate charge away from the estate charge they have breached the particulars defind within TP1.

Extract from my TP1:

The estate rent charge shall be a fair and proper proportion of the expenditure or estimated Expenditure as reasonably determined from time to time by the Management Company having regard to the number of properties constructed or to be constructed on the Estate on the basis that the whole of the Expenditure is to be recovered from the owners of such properties subject to the receipt and credit of any contributions received from owners outside the Estate towards the Expenditure.

An extract from my TP1:

Definition 1.15 - Estate management areas - means the areas of land facilities structures and amenities within the Estate for upkeep and maintenance of which the Management company is or will become responsible which comprise:

Any entrance gates or entrance features to the estate management areas and associated equipment and machinery.

Can the MC change the terms of the TP1, do they need to notify the residents of this in a certain manner and should they be sending out new copies of the TP1 to residents? The MC have just mentioned they made some adjustments to the charges a couple of years ago. I was only made aware of this via AGM meeting minutes.

Also the site covers a number of courtyards, could these be split off so they ponly pay charges for works to their corresponding courtyard?Again how does the MC have to go about doing this?Do they have to follow any legal proceedings or is it a case that the MC can makes any changes to the TP1 whenever they want?

[hyposmurf]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

The reason I'm asking this question is that the MC have split this charge off to suit some of the residents, so the charging is fairer, but at the same time this has not been done for all the charges.For instance some of the gardening and electrical repair charges could also be split off as not all residents have these services provided or have access to them. I'm currently lumped with paying all charges, but if this was split fairly I would only be paying for those that I am provided with, same as those who don't use the gate but have had this charge removed from their costs.

[hyposmurf]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

Have I posted this in the correct forum?I seem to be talking to myself on this thread ,not a sole has come back to me .

[Kati]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

Hi [MENTION=62986]hyposmurf[/MENTION] ... sorry you haven't had any replies yet, :sorry: I'd suggest waiting a bit longer so that your thread gets seen by the Beagles most able to advise

K x

[hyposmurf]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

Thanks Kati. I'll just have to wait and see if someone will reply

[hyposmurf]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

Is there any member on this forum that is experienced legal mattters relating to properties that could give me some help please?

[dan_1207]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

It doesn't look like the MC are trying to change the terms of the TP1 to me; they're still acting within what would be considered fair and reasonable IMO.

A TP1 is a deed and as such, is subject to restrictions when it comes to varying that deed, however I don't think it's necessary when it comes to running certain expenditure through certain headings within the defined terms as given in your TP1.

[hyposmurf]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

Thanks for your reply dan. The gate charge is defined within the TP1 as being part of the estate charge, so surely by removing this charge from estate charge, they have in effect not followed what is defined within the TP1?

[dan_1207]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

What other funds are there that they would run the gate charge through?

[hyposmurf]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

Hi Dan what do you mean by other funds and by run through?

[dan_1207]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

Sorry, I should have explained properly. You said that the man co split the costs incurred from the gate away from the estate charge, so I thought you were getting at the fact they were now placing that expenditure under a different heading - ignore me!

Where a TP1 obliges a tenant to pay a "fair proportion" (or similar words) of the costs of works or services, it will be a question of fact and degree in each case whether the resulting charge meets these conditions (see, among many other possible examples, Sutton (Hastoe) Housing Association v Williams [1988] 20 HLR 321, Re Rowner Estates Limited LRX/3/2006).

There's no clear cut answer, and it's really down to arguing it with the management company.

What notice did they give (and reasoning for) changing the proportion?

[hyposmurf]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

You were correct, they have split the gate charge away from the estate charge . Creating a new gate charge, that was previously headed under part of the estate charge. It is now a seperate charge from the estate charge, so not as per the TP1 which states the gate falls under the estate areas.

[dan_1207]

Re: Adjustments by residential managing agent to TP1 regarding estate costs

It will, no doubt, still be within the Estate Charge as regards the service charge accounts. It doesn't seem to be overly unfair in my opinion, and the man co have the discretion to change this, given your TP1 does not seek to deal directly with apportionments (such as by defining a percentage, or on rateable value of the apartment).