Flat: Maintenance charging and Building Insurance

[Bleuciel27]

Hello everyone. I am a new lad in the area and I would like to say hi and congratulate all of you who tried to help each other. Well done.

 

I have got 3 problems which are slightly different from the banking sector. Since last year I have been in financial troubles. Finally I manage to get on IVA. And the IVA went through on June 07. I am left with a minimum to see through a month. The problem is that I live in a block of Flats (10 storey building), which means that I have to pay maintenance charges and it is paid twice a year. Invoices are usually issued in June or December of each year. However they do give only about 3 weeks to pay the total amount of money. Because of my particular situation (IVA), I have approached the maintenance agent to explain my financial problems, that I CANNOT PAY THE TOTAL AMOUNT in one lump sum. I have tried to negotiate an alternative method of payment. I offer to pay monthly or by instalments, which they declined. I used to go to their office to settle the debt by making cash payments. In November 2007 I attempted to make a cash payment, which they refused to take and said that they are referring my case to a Debt Collector. I didn't know what else to do. I went through my paperwork to find they bank account and I start paying them as I go. Because I couldn't find the money to pay everything in one go, they refer to a debt collector who added their fees and everytime the maintenance agent send me a letter to remind me with outstanding balance they keep increase with an administration fees of £25. I just think don't think it is right for them to keep charging these fees. I am stuck here as I can sell the flat not before I finish with my IVA. Please, anybody outhere to help. I am loosing sleep and I am loosing weight about this.

[waterbottle]

Hi there.

 

I can't offer a definitive answer but I can offer some advice which I think might be helpful.

 

It would be a good idea to try and put your payment proposals in writing.

 

With regard to the £25 fee you will have to do a bit of work to claim them back. I think that, as with bank charges, it would be regarded as a penalty because it doesn't represent the real cost to the agency. You shouldn't really have to pay it.

 

Are you a long way behind with payments? How much have you paid in fees? If you put some details up here someone will probably be able to tell you exactly how to phrase a letter to the debt collector.

 

Also, make sure you get receipts every time you pay cash. If you don't have all the receipts don't tell the company as they sound a bit dodgy.

 

Lastly, can anyone reading this offer any advice about the implication of an IVA being involved? If the applicant cannot afford to live properly, perhaps the IVA can be adjusted...

 

Good luck and try not to worry about this. Authoritative help should be along soon.

[gazebo]

Does your lease say anything specifically about the timing of payments of invoices or the billing cycle?

[Bleuciel27]

Thankyou very much for your help waterbottle and gazebo. Gazebo, to be honest I think in the lease it said that we need to pay maintenance charges 6 months in advance. Probably I must be one of those who have taken their mortgage without reading properly and trying to amend any statements before signing papers. Considering I was excited by having my first mortgage and without missing a good deal. Here I was thinking that maybe there is some kind of arrangement by laws I can make.

 

Re waterbottle comments, really I am not a long way behind with payments I think. For an example. Our maintainance charges is about £1600 a year paid six monthly. Let's say on 15 December they sent an invoice of £800 to be paid by 31 December. I couldn't have money in time. I went to pay half of the money through their bank account on the 07th January. Next I have received a letter from their debt collector. I replied to them. Obviously they sent my letter back to their client. Last week I went to the agent office. One of the staff was saying that as from now on I will have to deal with their debt collector.

 

So far I have paid half of the fees through their bank accout. I have got receipt from the bank. The other half of the money I told them I will try to pay it by the middle of the next month. Now my concerns are the administration charges I haven't been paying. By laws, do I have to pay it? Consider my IVA, if we go to court, what is likely to be the outcoume? I am really struggling financially, obviously I cannot affor a lawyer. What to do?

[Aequitas]

Administration charges can only be levied if the lease allows it.

[waterbottle]

Have a search for unfair penalty charges in some of the banking forums. If you pay late then you may incur some penalties but it may well be the case that you can only be charged their realistic costs. This would not include £20 per letter!

[Aequitas]

Have a search for unfair penalty charges in some of the banking forums. If you pay late then you may incur some penalties but it may well be the case that you can only be charged their realistic costs. This would not include £20 per letter!

 

This starts to get complicated in the context of tenancies.

 

The starting point has to be the lease. We do not know what the lease says. It is unlikely that it provides for specific payments (other than interest) for late payment, but likely that it provides for the tenant to reimburse the landlord any costs incurred in connection with arrears of rent/maintenance. If it does, then that it is a contract for indemnity. The point is that the landlord must be under an obligation to pay the agent for the service and if he is, the tenant must meet the cost. The question of it being a penalty does not really arise as the landlord (who is the person with whom the contract is made) will not benefit.

 

In the absence of knowing exactly what the lease provides, further comment is not possible.

[waterbottle]

Thank you for that input. Glad to have someone more knowledgable helping out.

 

In my lease it says that the agent can charge me £47 for each letter sent regarding rent arrears or other matters (I forget what exactly)

 

I was under the impression that these are unlawful. Am I mistaken? What is the position with people - there are some on this site - who are getting letters weekly from their agent at £47 each?

[yaffsimone1]

.........Starting again

[yaffsimone1]

Thankyou very much for your help waterbottle and gazebo. Gazebo, to be honest I think in the lease it said that we need to pay maintenance charges 6 months in advance. Probably I must be one of those who have taken their mortgage without reading properly and trying to amend any statements before signing papers. Considering I was excited by having my first mortgage and without missing a good deal. Here I was thinking that maybe there is some kind of arrangement by laws I can make.

 

Re waterbottle comments, really I am not a long way behind with payments I think. For an example. Our maintainance charges is about £1600 a year paid six monthly. Let's say on 15 December they sent an invoice of £800 to be paid by 31 December. I couldn't have money in time. I went to pay half of the money through their bank account on the 07th January. Next I have received a letter from their debt collector. I replied to them. Obviously they sent my letter back to their client. Last week I went to the agent office. One of the staff was saying that as from now on I will have to deal with their debt collector.

 

So far I have paid half of the fees through their bank accout. I have got receipt from the bank. The other half of the money I told them I will try to pay it by the middle of the next month. Now my concerns are the administration charges I haven't been paying. By laws, do I have to pay it? Consider my IVA, if we go to court, what is likely to be the outcoume? I am really struggling financially, obviously I cannot affor a lawyer. What to do?

 

 

To pay six months in advance is the norm, i pay mine six months in advance, however, the managing agents do allow the residents to pay monthly although this is not allowed for within the lease.

 

This has nothing to do with your mortgage (well not a such) your solicitor would have read the lease and will have advised you of anything out of the ordinary, unfortunately, they dont advise you of the prescribed payment methods (well mine didn't!)

 

Aqeuitas is right they can only charge for what is stated in the lease. My lease does not state anything about admin charges and my managing agents tried to sting me for Admin charges, politely told them to get stuffed!

 

This is the problem with leasehold properties, you have to pay your service charges and ground rent otherwise the freeholder has a legal right to forfeit your lease (lets not try to get into that yet, that is worst case and i am assuming your managing agents have not threatened this, and there are honest ways to get round it)

 

You can email me your lease if you want, i should say at this point i am a leaseholder and have just come out of a two year dispute with mine managing agents, i know my lease back to front!!!

 

There are other ways to get this paid, i will try and help as much as i can.

 

Yaff

[Aequitas]

In my lease it says that the agent can charge me £47 for each letter sent regarding rent arrears or other matters (I forget what exactly)

 

We are talking about a long lease, aren't we? If so, this is quite unusual. Can we have the exact wording, please?

[waterbottle]

I've just realised I may have confused things by inexact wording. I apologise in advance if this is the case. Whilst I understand that the original poster was talking about a maintenance company I was talking about the letting agents for an AStenancy and I was applying the principle of penalty charges being unfair. The wording is in Foxtons Terms and Conditions which we were forced to sign in addition to the contract. It says

 

'An administration fee of £40 + VAT will be charged for each letter sent by Foxtons regarding late or non payment of rent or administration charges'

 

In addition the contract says we must pay interest at 4% over base rate on any balance owed.

[waterbottle]

Any advice on whether these charges are sustainable...

[Aequitas]

A bit difficult to answer without seeing the whole thing. Obviously it cannot be taken quite at face value since the agent could write twenty letters in one day...

 

I confess I am wondering why a tenant should have to agree anything with an agent. What service is the agent supplying to the tenant? The agent is the landlord's agent.

[waterbottle]

The problem seems to be that the agent is Foxtons. This may be meaningless if you are outside London but if you ever use them they are the great satan.

 

I have had a number of dealings with bad companies but Foxtons are truly the most awful company I have ever encountered. Google 'Foxtons' and you will see what I mean.

 

It seems excessive as they already take a massive cut from the LL for doing nothing. And, if we leave early for any reason we must pay Foxtons their commission for months missed.