Question about an increase in Service Charge

kingolympics

Prominent Member
Joined
Dec 8, 2006
Messages
796
Reaction score
70
Points
305
I own my flat leasehold...the housing association that run the block increased our service charge by 25% this year because they undercharged for electricity and some other bills from several years ago.

These mistakes were all made before I bought the property, yet I am now having to pay for them.

They have said there's nothing I can do about it. Maybe they're right, but I want to check. Is there anything I can do?
 
Not sure if it matters but is this a permanent increase or a one-off? Have they realised they are charging too little or are they trying to also make up for a particular shortfall amount?
 
Not sure if it matters but is this a permanent increase or a one-off? Have they realised they are charging too little or are they trying to also make up for a particular shortfall amount?

Its an increase for this financial year, so affects each monthly payment. They've said it is to cover the backdated charges
 
Will it apply next year and every subsequent year I mean?
 
How transparent is this increase - by which I mean, have they provided all the data to justify the increase or is it hidden, just a price increase.

Cheers,

Nigel
 
They've said it is to cover the backdated charges

So they are expecting you to pay for something you hadn't used or even been there to use?
As said above, will this increased charge be cleared in a set period of time and then the price dropped?
 
Are you contracted to pay the charge? If not, then don't pay, and/or resign from the association.

If you are contracted, then I don't see you have a choice. Assuming the association is acting with due financial probity, then the costs have to be met somehow. Ex-tenants have no obligation, so it's up to the current lot to pay its way. Basically, you inherited a situation which could not have reasonably been foreseen when you took out the lease (or could it? If so, then things might be a little different). It may be a bit unfair, but what choice does the association have?

Look at it this way: suppose the error was an over-, not an under-, charge. Would you expect the residents at that time, including those who have left, to be given refunds or a lower rent, whilst you paid more?
 
Might be worth having a look at the lease-advice.org web site and reading up on service charges, below is a extract from their site which may be relevant to your situation.

Normally the lease will provide for the service charge to be demanded in advance, but occasions will arise when the demands are issued after completion of the works or provision of the service. In these cases a statutory time limit applies: the landlord must issue the demand within 18 months of his incurring the cost. If the demand is issued later than this, the landlord cannot recover the costs at all, unless a notice is served during the 18 months stating that costs have been incurred and that the tenant will be required to contribute to them by payment of a service charge (section 20B Landlord & Tenant Act 1985).
 
Looks like Chris has it.
 

The latest video from AVForums

Is 4K Blu-ray Worth It?
Subscribe to our YouTube channel
Back
Top Bottom