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Misled and lied to about Service Charges

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  • Misled and lied to about Service Charges

    Hello, I moved in to a Persimmon new build property in January 2023. I was told a service charge of £704 per annum upon reservation. I remember it saying 'estimated'. I have completed and moved in. When the Management company took over 4 months after we moved in (April 23), we then received the final bill £1064 (pro rated) which is a 130% increase on what they told us at reservation, year on year. Upon discussing it with other residents, Persimmon & the Management company have used the 2019 valuations when calculating the service charges and citing additional services for fire, health and safety regulations and inspections. They have refused to give me compensation saying the original figure was an estimate. Note that they did know of the increased service charges as residents who had moved in earlier and living on site in December 22 were advised of the increase. That was before my exchange and completion at that point. Is there anything I can do to get compensation as I really feel misled here. I do not understand why they could not have told us of the increased service charges in December 22 before exchange but of course, they did not want to risk the sale. Saying 'estimated' service charges, I expect some change but not a 130% increase. It is unconscionable. I expect an 'estimate' to be in the ball park.
    Tags: None

  • #2
    It probably was an accurate estimate at 2019 prices.
    Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.

    Guides and handbooks for Litigants in Person - :

    https://legalbeagles.info/forums/for...60#post1701560

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    • #3
      An increase from £704 to 1064 is 51%.

      What you need to do is get an explanation / reason for the increase from Persimmon / management company, if you still think it's 'unfair', challenge it, but do everything in writing, email etc.

      Info on challenging service charges -

      https://assets.publishing.service.go...dertakings.pdf

      https://www.gov.uk/leasehold-propert...other-expenses

      https://www.lease-advice.org/advice-...-other-issues/

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      • #4
        Thank you for the links. I will go through them. That is helpful!

        Are my calculations wrong? Correct if I am wrong:

        Estimated Service charges per annum: 704
        Actual Service charges (pro ratad for Apr - Dec): 1064
        Equivalent to 1619 per annum.

        Comparing to other service charges generally, is this normal? Or this at the very high end?

        Comment


        • #5
          Originally posted by AmandaM View Post
          Thank you for the links. I will go through them. That is helpful!

          Are my calculations wrong? Correct if I am wrong:

          Estimated Service charges per annum: 704
          Actual Service charges (pro ratad for Apr - Dec): 1064
          Equivalent to 1619 per annum.

          Comparing to other service charges generally, is this normal? Or this at the very high end?
          I missed the 'pro rata' bit, my fault.

          If you include April (9 months), as you say, you moved in during April, you say '(pro ratad for Apr - Dec)' then the Annual charges per annum are £1419, that's approx. 100%.

          'Comparing to other service charges generally, is this normal? Or this at the very high end?'

          I know very little about Service Charges, but if they look unreasonable, which a 100% increase is and you were told different at time of purchase, then complain.

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