Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
Cost of living

Stretching your budget? Share tips and advice to discuss budgeting and energy saving here. For the latest deals and discounts, sign up for Mumsnet Moneysaver emails.

Original poster

Unexpected bill for over £700!

39 replies

Namechange1943 · 18/07/2023 15:42

I’ve just received a bill from the managing agents for my flat saying I owe over £700 in service charges. I queried it as I always pay on time by Direct Debit but they claim it is from many years ago when they were changing companies /between systems. I can’t pay them the full amount at once so will have to pay monthly ,which I am sure they won’t be happy with, but to be honest I think they have a bit of a cheek only mentioning it now? Surely there should be some sort of time limit. I do know I will have to pay otherwise I would breach my lease agreement but it is frustrating! WWYD?

OP posts:
MrsDanversGlidesAgain · 29/07/2023 14:25

From my long and bitter experience with managing agents none of them would let a debt go unpaid for 14 weeks, let alone 14 years, and the fact that their accounting processes are inadequate is not your problem. Also ask LAS if you're supposed to wade through 40 pages of management accounts and be supposed to know what they mean. Has every flat been hit with this demand? because that sounds like a lot of money they've not charged. Service charges are meant to be for the upkeep of the property and £ 700 times 1000 flats is £700,000 not available for those purposes.

It sounds to me like a shit hot audit or a new finance director has picked this up and they are chancing it. Ask why this hasn't been picked up before and if this shortfall in service charges over 14 years is the reason why your service charges have increased so much. Ask how long they've known about this. Ask as many questions as you can think of to get to the bottom of this. It sounds to me like the finance department has been at the very least negligent and is being unreasonable in dropping this demand on you after all this time.

Starlitexpress · 29/07/2023 14:43

A friend had this problem, its unfortunately so common that there is a latter template on Martin Lewis's website you can use.

Friend used it and management company backed off.

Original poster
Namechange1943 · 29/07/2023 18:21

Starlitexpress · 29/07/2023 14:43

A friend had this problem, its unfortunately so common that there is a latter template on Martin Lewis's website you can use.

Friend used it and management company backed off.

Thank you for all the advice and replies. Will look for the template letter- so pleased your friend was successful : it’s ridiculous!

OP posts:
Original poster
Namechange1943 · 29/07/2023 20:32

MrsDanversGlidesAgain · 29/07/2023 14:25

From my long and bitter experience with managing agents none of them would let a debt go unpaid for 14 weeks, let alone 14 years, and the fact that their accounting processes are inadequate is not your problem. Also ask LAS if you're supposed to wade through 40 pages of management accounts and be supposed to know what they mean. Has every flat been hit with this demand? because that sounds like a lot of money they've not charged. Service charges are meant to be for the upkeep of the property and £ 700 times 1000 flats is £700,000 not available for those purposes.

It sounds to me like a shit hot audit or a new finance director has picked this up and they are chancing it. Ask why this hasn't been picked up before and if this shortfall in service charges over 14 years is the reason why your service charges have increased so much. Ask how long they've known about this. Ask as many questions as you can think of to get to the bottom of this. It sounds to me like the finance department has been at the very least negligent and is being unreasonable in dropping this demand on you after all this time.

A new property management officer has been appointed. As you say I think they have probably looked through their records and identified an anomaly- they suggested there was an issue with the completion dates in 2008/09.

i did mention to the Advisory Service that they hadn’t issued transparent notices at the time (or even subsequently) as required. Shockingly was told that it was easy for Managing Agents to ‘find’ historic notices - and it is hard for lessees to prove a negative eg that you didn’t ever receive one. They advised that I stick with the argument about them being out of time under the Limitation Act 1980.

OP posts:
justasmalltownmum · 29/07/2023 21:17

I got a letter like this. I checked bank statements and found I had paid it!

Original poster
Namechange1943 · 31/07/2023 12:18

Grrr. The company have now responded correcting their initial email which said that the service charges were incurred as far back as 2009. They are now saying ‘the most recent charge that contributed towards the current arrears balance was from the billing period 01/01/2012-30/06/12. It is my understanding that the Limitation Act gives a 12 year window to collect outstanding service charge arrears, so the latest billing period is reasonable to demand’. They have said if I dispute this I can go to the First Tier Tribunal but an initial application fee (£100) must be paid followed by a hearing fee (£200) and potentially their legal and admin costs .

So fed up. Everything seems stacked against us.

OP posts:
Telemichus · 31/07/2023 12:46

Take a breath. It’s reasonable for you to have a few days to consider your options & seek advice. Is there a law school near you? Some run free surgeries which might be worth a look. Do you have the original documentation?
mum just wondering if you could get your own auditor to look? I know nothing tho, so just throwing ideas in.

123ZYX · 31/07/2023 13:02

My understanding is that they still need to have informed you of the charge within the 18 months. I'd be asking them to demonstrate that the amounts have not been included in other invoices and that you have been informed of the charges previously

SquishyGloopyBum · 31/07/2023 22:04

They still need to give you details. I'd also be querying why the date has now changed.

I think they are trying it on with this latest tactic. The costs they are spouting are to try and get you to concede.

Take advice on this.

cheesenpickle · 31/07/2023 22:25

Cant you ask for a full break down and only pay the charges that fall within the 12 year period?

it might be worth going to Citizens advice to help you with responding to them.

Original poster
Namechange1943 · 11/08/2023 14:09

Good news! I wrote to my MP about what had happened as I was so frustrated , copying in the Chief Executive of the Managing Agent (a charity!). I subsequently received a letter from the charity saying that as a one off gesture of goodwill they are going to write off the charge!! I am so relieved.

Thank you so much for all your help and advice. I am so grateful.

OP posts:
mishmased · 12/08/2023 02:33

@Namechange1943 just reading this, amazing news, congratulations 🎉
I'm delighted for you, now you can breathe easy!

bluejelly · 12/08/2023 03:35

Brilliant news! Well done for fighting it.

Original poster
Namechange1943 · 12/08/2023 12:56

Thank you. To be honest without the advice of posters on Mumsnet I would have probably have just paid it and struggled. So thanks for all your help.

OP posts:
New posts on this thread. Refresh page
Swipe left for the next trending thread