Hello Terry my name is ***** ***** I will help you with this.
I guess the question is, for their expenditure, has it been reasomable?
* reasonable *
It is not really about their expenditure its about the amount we are being asked to contribute.Please see question.I want your opinion on whether despite the management Company signing the lease with a service charge contribution figure of 4.59% they have charged 6.29% from the beginning
Indeed. Have they said why 6.29% is being charged?
Or why that higher fee is reasonable?
They are saying that the 6.29% is based on the square footage of the apartment which equates to 6.29% of the overall service charge payable.each flat makes a percentage contribution in accordance with the square footage of each.Our lease just says 4.54%.We were not informed on how the calculation was arrived at nor have we ever received any notification that the charge was in fact 6.29% not 4.54%
So there is no mention of the calculation anywhere in your lease?
Have they said it has always been like this?
No the only reference is in the clause I highlighted in my main query.My flat was the last to be sold and they say that the 4.54% figure was a mistake and it should have been 6.29%.They are arguing that under this clause they are acting reasonably and can charge the 6.29%
Did your Solicitor not ask?
No I assume because clause gave a specific figure
But then it also said as other % as may be reasonable. Did your Solicitor say why he/she did not ask?
No and it was nearly five years ago its a bit difficult to check now.I think at the time we took the 4.59% at face value and any increase on that would have to be justified by the Management Company so I we weren't too concerned.
Ok. So its been like this since day 1?
Yes the have charged the 6.29% from day one and as I say without any form of notification that they were actually charging 6.29%
OK. My view is that the contract allows for the higher charge, they seem to have a formula based on size and therefore the contract allows them to charge this.
However I think your Solicitor should have checked on this beforehand.
If your Solicitor did not potentially they are negligent. The clause is quite clear, 4.59% or such other charge as is reasonable.
Therefore your Solicitor could and should have written, asked what was being charged and what formula.
If the Solicitor did not potentially they are negligent.
Can I clarify anything for you about this today please?
Ok thanks.Its a bit disappointing on the basis i think we were misled on the actual 4.59% but understand your point.I will take this up with the firm of solicitors who acted on my behalf at the time.
Thanks for your assistance anyway
What you can do is write a formal complain to the Solicitors managing partner.
They can investigate the complaint and come back to you. If you are still not happy you can then complain to the regulator www.sra.org.uk
Yes I think I will do this Thanks again.
But it seems to me that the figure was not fixed and your Solicitor should have questioned it
Can I clarify anything else for you?
No you have been very helpful thank you