HLM Property Management Administration charges

[djcuts]

Hi

 

I am not sure if this is the right place for this query.

 

However I have a question i hope someone can help me with. My house is subject to HLM Property management, they are responsible for the maintenance of the estate and I get a bill each year as a service charge.

 

I had cash flow problems so was late paying the £152 fee, this was due on the 1st of January, but I received the letter, apologizing for the delay in issuing the charge, dated 16th February.

 

I was informed that the balance owing was over £290, the extra £140 odd pounds is an administration fee. I was gobsmacked but I have sent a mail to them regarding that and have paid the £152.31 I owed pending the outcome of what will happen with the extra administration fee.

 

I paid the £152.13 today , 20/04/2015. Now if 28 days are allowed from receipt of the letter, which at the earliest would be 17th, then I am 27 days late in paying. 28 days late if 28 days from the date of the letter.

 

Can an administration charge of this amount really be justifiable? I have put my case to them but I am banking on them being unsympathetic but I do feel an administration charge that almost doubles the original fee is somewhat disproportionate and would appreciate some advise as to what I can do in this situation.

 

Many thanks in advance.

 

DJC.

[dx100uk]

if they are a penalty they are unlawful

 

 

dx

[djcuts]

Hi DX

 

thanks for the reply. I said to them that I thought that this was surely unlawful, but they said not stating they had won numerous court cases about it, I was very dubious. Is there any information I can read regarding legalities of administration charges? Something that I can quote and refer them to in my defense ?

 

Regards

 

DJC.

[andydd]

I disagree with dx100uk, admin/extra/legal charges may well be payable if allowed by the lease, their is plenty of case law to support this.

 

Right lets start at the beginning, I assume you have a leasehold property, any charges MUST be within the lease (you should read and fully understand this).

 

I also assume the £152 is a service charge (and not Ground Rent ?). If you were late paying what does the lease say about this ?, if nothing then no extra charges can be added on full stop.

 

Firstly were the service charge demands valid ?, they must comply with the lease (dates, need to be certified ?) and they MUST comply exactly with this > http://www.lease-advice.org/publications/documents/document.asp?item=13, if not then nothing is payable.

 

Now also a step many companies forget is that extra admin charges (if allowable) must be demanded in accordance with this > http://www.lease-advice.org/publications/documents/document.asp?item=89

 

Even if they comply with all of the above then you can apply to the FTT (Previoulsy LVT) that the charges are not reasonable, for example sdid it cost £140 to send you a letter about being late (I for example had simil;ar fees reduced from £50 to £25 !), so id say £140 maybe excessive.

 

Have a read of (or redact and post up your lease) and come back

[dx100uk]

that's twice I've forgotten that now..old age.

 

 

dx

[djcuts]

Hi

 

Thanks for the replies.

 

 

I received the following in email:

 

===================================

Further to your email below I have looked into your account to review the administration fee charged.

 

You are aware that under the terms of your lease your service charges are due annually in advance on 1st January each year.

 

Administration charges are not added to the account straight away, an original application for payment is issued, then if a payment is not received 28 days after the issue date a further chaser letter is sent out warning that the next letter (letter before action) will incur an administration charge if payment is not received promptly. After a further 10 working days the final chaser letter is issued which incurs an administration charge of £120.00 plus vat, then after a further 10 working days the account is referred to our solicitor which incurs their referral fee of £165.00 plus vat.

 

An initial application for payment was issued to you on 16th February 2015 as per the attachment which you sent. We are made aware when these have been dispatched. An initial reminder letter was then issued to you on 24th March 2015 which at the point had given you 36 days to make the payment. A further 22 days past before a second letter was issued on 15th April 2015 which incurred the administration fee of £120.00 plus vat. Payment was not received until 20th April 2015.

 

The credit control procedure has been followed correctly and it is for the above reasons that on this occasion the administration fee will not be refunded to your account.

====================================

 

Now I did not receive said letter they say was issued on 15th April 2015.

 

I feel that this admin charge is well over what would be considered proportional to the original fee. Is there anything I can do here?

 

Many thanks.

 

DJC

[andydd]

I refer back to my previous post, it all depends on the lease, for a charge to be payable it HAS TO BE chargeable in the lease, with wording such as "late payment will attract a fee of£xxx" but it may be written in leaglese jargon and not as simple as that.

 

As I also mentioned any demand for an extra dmin fee must be attached with the Summary of Rights _ Admin Charges, many MC/FH's forget this.

 

Even if payable, you certainly could argue that £120 is more than enough to cover two letters.

 

You need to read the lease or post it here, then write to the company asking which clause in the lease allows them to charge such a fee.