Let’s look at the 5 Steps I’ve suggested to oppose service charge without getting legal
This week I was sent a service charge bill for one of my flats that 230% higher than the bill I received when I bought the flat 2 years ago. I was absolutely shocked! It was excessive considering the level of service the leaseholders and I receive, and the level of maintenance!
Receiving excessive service charge bills is not a happy surprise
However, not one to just allow this to happen, I am working at finding out the reason behind it and working at reducing it. Yet, I know that there are many people who would be in my position and not know what to do… and you may be surprised to hear that it doesn’t involve legal advice or court hearings… your first steps should be more peaceful then that.
Here’s my top 5 steps for opposing your excessive service charge demand:
- Request a copy of the service charge budget for the service charge invoice and also the previous years audited accounts.
- Dig out all of your previous service charge budgets and audited accounts (or ask your freeholder / managing agent to send them to you) and compare like for like.
- Decipher what the increase is for and whether there is an explanation for this, and look back through correspondence to see whether there has been a consultation between leaseholders for the works and increased cost and whether this is justified.
- If the increased cost isn’t documented and agreed through a consultation then you need to speak to the other leaseholders in the block and see whether they are also in agreement with the excessive service charge cost.
- Write / email your freeholder / managing agent and ask what the purpose of the increase in service charge is and whether this is reasonable.
Usually at this point there will be a discussion and you and your fellow leaseholders will be able to negotiate on costs. A freeholder / managing agent needs to be fair and reasonable and so an open conversation should ensue which gets to a place that everyone is comfortable with. This can take a weeks or months, just stand firm and look to come to a solution.
At some point you will have to sit down with your leaseholders and talk it out
Only in worst case scenario, when negotiations and open communication drastically fails, do you need to consult your solicitor. However, if you do, you will be prepared because you will have already got all the information and documentation you need!
Not only does talking about this openly maintain relationships, it keeps the dialogue open going forward. Getting involved now gives you greater control over what happens in your block and your expenses.
So, are you struggling with excessive service charge? How successful have you been in opening communication and negotiating? I want to hear from you in the comments section below!
NC
