SE23 Forum

A friend is increasingly concerned about the service charges levied on the flats here which seems to have increased three fold since the leaseholders made a successful bid for the management of the block and is looking to get in touch with others in a similar position as they no longer live in the area and the flat is rented out.
If anyone wants to PM me I can pass the message on. Questions are being asked about the justification for such exhorbitant charges and the way that the company is being run but no answers are being received only persistent requests for money.

The managing agent apparently featured in a television documentary a year ago about libel action where it was revealed that they instigated libel action against a leaseholder of another block who complained about their charges. There is therefore a need for caution but also increased concern about whats really going on and a lot of fear about the same thing happening to leaseholders who challenge their bills.

If anyone has more information to share please contact me and I will pass on the messages.

PS The charges seem to be £1800 per annum compared to £600 pa previously with no clear idea as to where the money is going and the amount of money for the reserve fund going into what seems to be a bank account controlled by one individual.

Does service charge include , insurance , water charges etc.

Flats vary very much as to what service charges cover.

I recall Vale Lodge has a huge hedge and much grass that would need looking after , plus of course window cleaning and keeping communal areas clean.

Yes but theres no reason for all these costs to significantly jump to almost £200 per month apparently. Its hardly got a concierge.
The new RTM company complained about existing service charges being extortionate and won over the leaseholders with pledge to reduce outgoings yet they almost trebled. Costs fell quite a bit due to competitive prices during the recession.

I agree Roz.
If water and insurance included would estimate 1600.00 odd a rough charge .

As far as I am aware the Management Agents have to produce accounts etc which are sent to every owner.

One tip for getting costs down is to get water meters. I know from experience if no meter each flat probably paying over 400.00 in water charges.

Apparently half of the charge goes towards a reserve fund however the basis of this is unclear and there is concern about how secure and safe this money is. If anyone has any idea how these work and what protections should be on offer it would be good to know. Thanks.

The fund should be in the name of the management commitee in the block , not the freeholder or managing agent.

I agree although in theory good to be prepared for emergencies ,if reserve to high you wonder if it is safe.