Leasehold Block of Flats - unexpected service charge

[Snoopy1948]

I live in a modern block of flats, 66 flats and a large retail unit underneath, currently occupied by a well known bed salesroom. The block was completed in 2010 and due to the developers going into administration, all flats were initially slow to sell but all flats were sold to completion late last year.

I took possession in April 2015 and on checking my legal paperwork ( I used a LC ) I cannot find anything regarding the additional leasehold enquiry form. I am thinking specifically about a declaration that large financially heavy works lie ahead.

We have recently, last month, been advised by our managing agents of specific rendering works ( cleaning, treating and repairing where necessary ) and the tenders quoted are in the region of £330,000. Leaseholders have been advised that their contribution is a defined percentage in their leases and mine will be 1.34% or £4771.

Residents are now worrying that this could well be a repetitive cycle of required maintenance, say a minimum of every five years, and on top of the other service charges, currently mine is around £1600 a year, some people's position may simply be unsustainable financially and many are in fear of being unable to afford the current stated demand when it comes down.

We are having a meeting with the CEO of the managing agents next week, together with a representative of the chartered surveyors who have been preparing the tenders etc.

The freehold was purchased by a property investor last November and they are keen to have the work completed this summer. There has been comments about people's fears that heavy maintenance charge demands may follow and that it may constitute a 'cash cow' for various agencies but there is no readily available proof to support that.

What options do the residents have? We have already gone through a failed RTM application last November and that was with the old freeholder. WE are now debating to either proceed with a further RTM application with the new freeholder or simply exist as a 'residents association'.

Also the retail unit's contribution has been quoted at 12.5%. We understand that the current occupying business is on a sub lease, so we are wondering who is responsible for that 12.5% share? Is it the main leaseholder or the current occupying business?

[Snoopy1948]

Re: Leasehold Block of Flats - unexpected service charge

[wales01man]

Re: Leasehold Block of Flats - unexpected service charge

why don't all the residents get together and pay for legal advice would save all the grief nearly 5K each flat is a lot of money

[Snoopy1948]

Re: Leasehold Block of Flats - unexpected service charge

Thanks Wales01Man

The immediate problem there is that our meetings, at worst, are attended by as little as 15 leaseholders and it is left to the brave few to push important matters around. Even allowing £1000 to £2000 for a tribunal, it is unlikely that the majority will want to chip in as we already have a failed RTM initial attempt to which 43 members paid £250.

We have now had a meeting, chaired by the CEO of the managing agents, with the Chartered Surveyor who is project managing the tenders and works, and they have agreed that there may well be cheaper ways to fund the necessary work, possibly reducing the cost to as little as £100K. I was not aware that the chartered surveyor can claim 10- 12.5% of 'the deal' as his commission which I consider an obscene amount of money i.e. £33000 on a tender of £330,000. Other people tell me that's the going rate however!

We have a specialist building contractor coming tomorrow who is going to survey the building and assess what is practical i.e. can he do the work without scaffolding, which would save a projected £160,000. He will be accompanied by a rep from the managing agent and three leaseholders of which I will be one. We are hoping for something good to come from that i.e. a substantially reduced tender followed by the managing agents being in full agreement ( although people don't expect an easy ride there ).