Absurd increase in service charges (leaseholder of flat)

[Loncan]

Appreciate any guidance here. I own a tiny flat in a fairly large block of flats. We received our service charges recently and they have risen 50%. In addition to last years increase, they have now been raised almost 75% in less than 18 months.

The management company is refusing to clarify the charges (many of which appear to be arbitrary, or are for services that we continue to be charged high fees for that don’t exist). I reached out to the company via email and the only response I received was to tell me not to ever contact them about this matter again. Other residents have just been outright ignored. Do we have any recourse here?

At the rate of growth they’ve been exhibiting, our fees will be over 1k/month within 3-4 years. This is not a luxury building, no onsite gym, facilities, etc.

I own and live in a leased flat.

Could your bills be going up due to the cladding crisis?

Waking watch, increased insurance premiums etc. I've just been landed with a huge bill to replace insulation that has been declared faulty.

It's a nightmare.

Perhaps theyare increasing yours for similar reasons.

Also can you get hold of the company accounts from Companies House website if needed. Our management gives us a breakdown every 6 months so you can see where the money goes.

You can absolutely challenge this. Your managing agent sounds appalling.

First step is check you lease and see what you have agreed to. Then get advice from Shelter or similar.

england.shelter.org.uk/professional_resources/legal/home_ownership/service_charges/challenging_service_charges_for_leasehold_properties

Others will have much better advice shortly I am sure.

But I had this and found the most effective thing was “acting as one” and mobilising leaseholders so you can present a united front and fight them en masse.

I also withheld payments (in some cases for years!) while in dispute.

Leasehold is a total nightmare (especially since pension firms started buying them as “investments” 😑 and it was a key reason I didn’t keep my flat as a rental - despite it being gorgeous and amazing.)

The freeholder was dire. Any paint work they did was shoddy beyond words (like laughably bad and the day rate on their decorator was charged at £500?!??) he was a toothless ex con who did 4 hour days and took 10 days to badly paint a hall
the external gardening got worse it went for annual prune and lawn mow every 3 months to fortnightly visits. 3 men would stand about and half heartedly clip a bush…..

It moved from £500 pa in year 1 which I didn’t mind as they did bugger all to £5k for a worse service (large trees had become severely overgrown) 7 years later…

I argued about 6-7k off across the period in proposed charges though which wasn’t too bad

And this was a housing association leaseholder. I dread to think what the private ones are up to.

You can book a call with the Leasehold Advisory Service for free for advice: clients.lease-advice.org/#/

We have rental flats and I have a fair amount of experience with Managing Agents. This includes a RTM case, a first tier tribunal and via an Emergency General Meeting sacked another firm who had appointed themselves as Directors.
Check your deeds. That should tell you how the directors are elected. You should also be advised who the Directors are via the MA, but can find out via Companies House if necessary. Sometimes the managing agent appoint themselves as Directors which maybe inappropriate. Try to get elected as a director with like minded other leaseholders.
There are some decent managing agents, I know a couple of firms who have been assisted leaseholders to get rid of poor managing agents, but it can be difficult.
You are entitled to ask questions.
Managing agents can be a nightmare. DC withdrew an offer on a flat when he had a response to his enquiry about the MA.

Thanks all, I wasn’t expecting so many responses. Some good advice here…I need to take a few days to get my ire down as it were lol, abs then I’ll make a plan of action.

Join the National Leasehold Campaign Facebook group. You will get good advice and support there..
m.facebook.com/groups/nationalleaseholdcampaign/about/