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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10451
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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Good morning, i have a buy to let property in a small block

Resolved Question:

Good morning, i have a buy to let property in a small block of flats in Birmingham. The tenants are fine and pay on time. The problem is with the management company, they are making all other landlords pay for the landlords who are not paying to the tune of £192.00 each. Is this correct, should we have to pay???
many thanks XXXXX
Submitted: 3 years ago.
Category: Law
Expert:  Aston Lawyer replied 3 years ago.
Hello and thanks for using Just Answer.

My name is XXXXX XXXXX am happy to assist you with your enquiry.

What exactly are the Management Company asking you "good Landlords" to pay for? Is it extra service charge?

I look forward to hearing from you.

Kind Regards
AL
Customer: replied 3 years ago.

Hi, no its not extra service, just the monthly service charge..

Expert:  Aston Lawyer replied 3 years ago.

Hi David,

Thanks for your reply.

Please note that the landlord's power to request/demand a service charge and a leaseholder's obligation to pay it are governed by the provisions of the lease. The lease is the contract between the leaseholder and the landlord and there is no obligation to pay anything other than what is provided for in the lease.
Therefore, on the basis that each of your Leases stipulates that you are responsible for a percentage share of the service charge, your Landlord certainly can not increase the amount you have to pay just because some other Leaseholder's are not paying their due proportion.

Both landlords and leaseholders have a right to ask a First-tier Tribunal (Property Chamber) whether a charge, or a proposed charge, is reasonable; however, there is no statutory definition of what is 'reasonable'. The Tribunal will consider the evidence presented and then make a determination on the matter.

An application may be made to the Tribunal whether or not the charge has already been paid. It can be in respect of costs already incurred for works, services or other charges, or in respect of an estimate or budget. However, if the charges have been agreed by the parties or finally determined by a court or tribunal, or by post-dispute arbitration, no application to a Tribunal can be made.

The questions the Tribunal are likely to ask are:
•was it, or would it be, in the circumstances, reasonable for the costs to be incurred and, if so: ◦were or will the works or services provided be to a reasonable standard?
◦what are the landlord's procedures for assessing and controlling the costs, including supervision?

I therefore suggest that you inform the Managing Agents of your intention to challenge the charges. If you wish further free advice, you can approach the Leasehold Advisory service. Link to their website is- www.lease-advice.org

I hope this gives you the legal background to pursue this matter.

Kind Regards
AL

Customer: replied 3 years ago.

a bit confused, are you saying that the Management Company can not ask us to pay for the Landlords who are not paying???

Expert:  Aston Lawyer replied 3 years ago.

Hi,

Sorry if I didn't make it clear- you are correct, the Management Co can NOT ask you and the other Leaseholders to pay more just because some Leaseholders are not paying their due proportion of service charge. All the Management Co can charge you is the percentage od service charge quoted in your Lease.

Kind Regards
AL
Customer: replied 3 years ago.

thats the answer i was looking for..does this mean we can ask for a refund if some have paid up?


many many thanks, XXXXX XXXXX!!!!!!


 

Expert:  Aston Lawyer replied 3 years ago.

Hi David,

You are entitled to a refund if this is what the Management Co have been doing. As mentioned in my first answer, you may need to threaten them with the Tribunal if they don't play ball.

I'm glad I have been able to assist you.

Best Wishes
AL
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