Management Company Issues

[latvia3]

A relative of mine rents out a property, I help her manage it. The Management Company that run the block are a nightmare.

 

Over a year ago there was a fire in the kitchen, when I spoke to the Management Company they said the building insurance included in the Service charge would cover some of the fire. Just send the Estimate and Invoice pay for the work and we will reimburse you.

 

Subsequently they say they lost the paperwork a total of five times, this included the Fire Incident report and pictures.

 

They consistently ignore my phone calls, email, faxes, registered mail.

 

I was fed up frustrated with their service and being out of pocket and went to the AGM and confronted the Property Manager in front of the Director who said they would sort it out. Still they haven't!

 

This Company is a joke they ask for SAE to send the receipts for the Service Charge back they don't. This is needed for my tax returns.

 

I recently asked them if a potential tenant could put a dish on the building they said they have to find out and still after three weeks with me chasing every second day no news. They say its not a priority for the Directors. I explained that this was urgent,I am asking out of courtesy as I want to do things by the book and other tenants have put dishes on the roof. As a result I lost the tenant and he had been the only one interested in a long time.

 

The Service charge request has now come in(£3k) and I have previously warned them that I will not pay until things are not sorted out.

 

However I do not want to break the law, or have to take this to tribunal etc if possible but not sure what else I can do.

 

Any experience or advise on how to deal with this? As far as I know all I can do is pay the service charge under disput?

 

Many Thanks

[bankoff]

Hi Latvia3

 

Have they given you a breakdown of how the Service Charge of £3K is made up. Look up the Leasehold Advisory Service for some info.

 

How long ago did you pay any Service Charge, do you pay yearly or monthly, or what?

 

I know a bit , but need more info of what the payments are supposed to be

 

Regards

B,,,,,,, off

[latvia3]

They have given me a spreadsheet of all the costs.

 

The payment is half yearly.

 

They really make my blood boil considering how much money they take and how little they do.

 

Thanks L3

[raydetinu]

How many flats are there in the building; have you thought of collectively running it yourslves! The leasehold reform act allows for self managemenr providing at least 50% of the flat owners agree.

There are other rules such as the minimum term of the lease etc.

All you have to do is set up a company to manage it with the leaseholders being part of it again at least 50% and serve an RTM notice on the lanlord. this ca n take only 28 days; he can dispute but waisting his time. He of course retains the freehold but you manage the property and keep him informed. Suggest you look at any Right To Manage websites.

Worth doing IMHO.

[latvia3]

There is some talk of buying the freehold. There has been so many management companies over the year without success.

 

I was advised and have paid the service charge under protest highlighting all the areas that need resolution.

Edited April 17, 2009 by latvia3
Spelling

[raydetinu]

You dont have to buy the freehold ( LL retains that ) you can just manage the building yourselves, LL cant object,well he can but but would need good reason. then you are in control of all the costs. Fairly straight forward to do just get 50% of tenants to agree.

[bellijayne]

An RTM Co. is a good idea. Bear in mind that any talk of the Freeholder being on the board of Directors can be easily negated - you vote him at the 1st meeting on a no confidence vote. This is worse for him on a business level as this will affect those who he does business with. You could also contact the Insolvency Office in that he's abused his position. they have a list for bent Directors too. This creates a paper trail at source, therefore anything untoward happens you've already laid the game plan. Hope this helps Also look in to the Bills of Exchange Act 1882 as this underpins the Credit Consumer Act 1974. These 2 Acts come in to their own when dealing with money as to how it's raised. what's it for, what's been done Etc...

[caro]

You seem to be finding some very old threads. Are you looking for something specific bellijayne?

[raydetinu]

Bored I expect, not really helpful as so late!

[mariner51]

Also not helpful for regular advisers who peruse the recent posts daily.

 

Perhaps lock threads when OP >2yr and/or rel advice last post >1yr old. Thread would still appear in Search results?

[bellijayne]

Yes I am as I am new to the site. I'm looking to see if there are any threads aimed at those who have cleared their Mortgages & bought their Leases outright. The reason being that for some they may have had their original contract with the first Freeholder, then that is say sold on. Along comes other Freeholders & that it seems is where the problem lies. Original Freeholders it appears only charged for Ground Rent (low rent) and Building Insurance, none of which was a licence to print. I'm looking to see who else has faced or is facing Repossession due to a bent Freeholder even though they have lived there for more 12 Yrs.

[raydetinu]

Perhaps ask that question in a new thread!