Unreasonable management service charge increase (almost 600%) - advice please

[buttons77]

Hi, I'm looking for some advice if anyone can help please
I own the lease to my flat and pay an annual service charge.
I have just received the Estimate of Expenditure for 2012/13 and this includes a Management Charge which has increased from £42.52 last year to £295.85 (595%!!) Previous years have always been around £40.
Can they impose such an increase - do I have any right to complain?
Any advice would be gratefully received. Thanks in advance

[factor-fiction]

What does your contract/agreement say on this issue?

[boxtops]

It may be that the management company is looking to do some major work, e.g. roof, or drains, in which case if your T&Cs say the lessees pay, then you have do. It all depends what it says in your lease.

[buttons77]

Factor - the lease just says that a service charge is payable - doesn't specify any amounts.
Boxtops - there is also a charge of £81 for maintenance/repairs (this has also been charged every year in the past, despite no repairs/maintenace to my property).
The total service charge has increased from £345.07 (and similar amounts in previous years) to £601.26.
I feel this is too high - there has been no notice or explanation.

[buildersmate]

You need to work together with the other leaseholders on this as you won't be able to alter this in isolation or for you alone.
Firstly establish what rights the leaseholders have as a body to appoint the Management Organisation - you may have the right to remove them and appoint another - or at least negotiate as a body (changing the management company, if it is possible, inevitably requires work by the leaseholders in appointing one).
Some of these leases are tied down such the leaseholders have no right to remove the management company - I believe McCarthy & Stone developments are one such type.

[buttons77]

Thanks Builders Mate - I don't think we'll be able to remove the Management Company as they own the whole estate.
The majorityof properties are rentals but there are a handful of us who have bought our homes.
I haven't spoken to anyone else here yet but am quite concerned that they can do this without any explanation for such a high increase.
It is going to be a struggle for me and a few others, I'm sure.
It's probably the case that we have no rights but I just wondered if anyone on here could suggest an independent body who could help.

[bushbaby_de]

buttons, the estimate should have been accompanied by an estimate of the accounts, and you also have previously received actual accounts from previous years, so you can inspect them and see where the increase has come from. Management Charges are often a percentage of the costs incurred, so if the overall costs are higher then so is the management charge, for example. You say that only some of the flats are owned but others are rented - is it a council or housing association development?

[tonywiltshire]

Contact the Leasehold advisory service on 020 7383 9800.

[buttons77]

Thanks everyone for all your answers.
I wrote to complain and got a reply yesterday saying that there had been an error and the Management Charge will be £44.56.
Bushbaby - we have never received actual accounts from them (they were a Housing Association, now a Foundation). Each year in April we receive a summary page of the Estimate of Expenditure, then in August a summary page of the actual cost but no detailed accounts.

[SimSSW]

Hi, I'm a Freeholder, I've bought my house 3year ago, But the Council keep sending me the Service Charge invoices and Service Charge letters to ask for payment, Actually they have not provide any service to my house at all.

I've sent them an email to prove that I'm a Freeholder, And the Leasehold Officer has replied that, "Says"
(I can confirm that your property is freehold, however, you are liable to make some contribution towards the service charges.)

They just wasting my time, What I need to do next and any professional advice I can get from?

I'd be gratefull to receive any advice. Thanks in advance.

[SimSSW]

Hi, I'm a Freeholder, I've bought my house 3year ago, But the Council keep sending me the Service Charge invoices and Service Charge letters to ask for payment, Actually they have not provide any service to my house at all.

I've sent them an email to prove that I'm a Freeholder, And the Leasehold Officer has replied that, "Says"
(I can confirm that your property is freehold, however, you are liable to make some contribution towards the service charges.)

They just wasting my time, What I need to do next and any professional advice I can get from?

I'd be gratefull to receive any advice. Thanks in advance.

[bushbaby_de]

Sims it is possible to own a house freehold but have to pay a service charge to the local landowner. Rather than waking up a two year old thread you may find it better to post your own question.

[SimSSW]

Management Charges are often a percentage of the costs incurred, It maybe wrong calculations, I'd ask them for the total actual cost of Managements and what's the percentage of it.