Service charges and management company

Discussion in 'General Property Investment Discussion' started by Steve_101, Jun 16, 2018.

  1. Steve_101

    Steve_101 New Member

    Hi. My house is 11 years old and I bought it two years ago. It was built by Barrat and as per the deeds I am liable to pay First Port a service fee every 6 months. It was £173 per year but just gone up to £190 without them giving any notification or explanation why. I have therefore continued to only pay them the former amount until they tell me why. (My last query took 9 months for a response)

    My first question is about the this joke of a company. Looking at their breakdown of costs, The annual bill for the entire estate is now around £28000. There is a full breakdown and lists their 'admin' free as £21000 which leaves only £7000 of actual expenditure that they pay for. For £21000 I expect someone to reply sooner than 9 months! I want to know is this par for the course and can they charge this much for themselves in ratio to what they actually do? The council have adopted the drains, sewers, street lighting and roads so literally all they do is send someone to cut the grass once a month in the summer months, send someone to blow leaves off of the street and into my garden with a leaf blower every now and then and change the odd light bulb in the communal car park. I think its disgusting and there must be something we can do because it is so grossly disproportionate.

    Secondly I have just applied for a remortgage as my initial term is up. I have been told by Enact that it is in my deeds that they have to seek permission and a 'certificate of compliance' from another Mickey mouse company called Estates & Management. Why the hell should I have to ask these strangers if I want to change my mortgage. This company have kindly offered to provide this 'certificate' after 20 minutes on the phone to them arguing that it is literally just a generic piece of paper that they send out in response to Enacts request, for the marginal sum of £175!!!!!! For a piece of paper saying 'yeah go for it' They do no checks, nothing. It is blatantly just a way to generate money and again, disgusting! Is there any way of challenging this practise because these companies are just parasites leaching money from us in any way that they can!

    Look forward to any responses.
    Thanks, Steve.
     
  2. diyhelp

    diyhelp Active Member

    I totally agree that this is a disgrace but as it is in your deeds there is little you can do about it unless you are prepared to go through the courts and claim the "agreements" are unfair and offer no value to you. The government is supposed to be looking into the service charge issue but as ever this stuff gets kicked into the long grass. It is a licence to print money for these companies, £28000 (and rising) a year to do what? Absolute joke.
     
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