Can anyone advise? Management company on freehold

[MrsKingfisher]

We have been in our new build for 3 years each year the management fee for the 'green' spaces goes up exponentially.

No one in our community is happy with the massive unregulated fees or the lack of work they do.

We as a community have the option once the building company has left to self manage or appoint a new company until then we are lumped with ridiculous fees.

From a legal standpoint is there any way of asking for a full breakdown of costs and getting something done in the here and now?

I am aware of fleece tax and people's opinions on new builds etc, I'm just looking for a legal leg.

I'm assuming that the service charge is secured through an estate rentcharge pursuant to s. 2(4)(b) of the Rentcharges Act 1977?

If that's the case, then the law says that the rentcharge has to be reasonable in the context of the obligations the rentowner covenants to perform (s. 2(5) RA 77).

I'll say upfront that it is a complex area with very, very little case law. It's not even clear how you would start to make such a challenge in the courts. It would likely be very expensive.

My practical advice would be to keep paying it (the last thing you want is to fending off an action for recovery or- even worse- re-entry of your house) but ask them for a breakdown by referencing s. 2 (5).
Please note, s. 2(5) doesn't give you an actual right to that information, but it does mean that they can only recover what is reasonable pursuant to the rentcharge when they come to enforce it.

If they refuse, you're probably best to suck it up until you can get the green spaces transferred.

If they do provide the information and you think the charge is excessive, it would be a matter of negotiation I fear. As I said, starting litigation (even if it was clear where to start it!) would be expensive and protracted.

Your solicitor/conveyancer should have warned you about this. If not, that's a whole different matter!

Thank you, I'm not actually sure I know it's in our legal documentation I'm going through it to check. Thanks so much for the info I'll be writing to them and asking for the information suggested.

I should also add we own our property it is a freehold not a leasehold

Go on the HORNETS Facebook page, lots of information there on this exact scenario

Sorry it will come up better if you type in Home Owners Rights Network

"Please note, s. 2(5) doesn't give you an actual right to that information, but it does mean that they can only recover what is reasonable pursuant to the rentcharge when they come to enforce it. "

That would point in the direction of refusing to pay. They won't want to litigate either. If you all stand firm together you'll get somewhere.

Great info thank you so much