Can a freeholder really do this?! HUGE bill

[SapphosRock]

Lived in the same flat for the past 10 years. I'm a leaseholder.

Pay a bi-annual service charge of around £1,000 to a property management company that does very little. Had some occasional, necessary repairs.

Received the usual £1k bill this month alongside an additional £7.5k for 'decoration of rear elevation'.

I don't think this has been done, I certainly haven't noticed anything being decorated.

Can I contest it? Can I ask that they don't do it?

There are 4 flats in the building, two of the flats are rented out and 1 is empty so I am the only owner who lives there.

I don't have £8.5k :( I have £5k of savings that has taken me years to save and I am gutted if it all has to go on this.

Any advice?

They can’t just send you a bill.

They have to have served you a section 20 notice beforehand to notify you and give you chance to suggest your own contractors.

https://www.which.co.uk/consumer-rights/advice/leasehold-rights-what-is-a-section-20-consultation-aAe825X1SIif

7.5 each??

Apparently they did send a section 20 letter. Partner opened it and forgot to tell me.

The flat is in both our names.

Partner has no savings either.

Yes if they haven’t served you a section 20 the max they can reclaim is £250pp so they’ve totally fucked themselves over if you weren’t given one.

Oh well in this case he needs to take out a credit card or loan and get paying. What an idiot!

Has rhe works been done or is it proposed? Ask to see the estimate as that sounds very high.
The cost are to be split between all properties, it isn't just for you to pay and 30k odd seems very high!

This is a fairly big issue.

Yes the total amount is £22,500 and our share £7,500. Maybe the basement flat isn't included. We are top floor.

Also this.

Everyone should be included, if your freehold is defined as covering everyone.

Your partner forgot to mention a7.5k bill? 🤔

The freeholder is required to get three estimates. Ask to see them all.

Okay thanks, will ask this.

To be fair we've had a lot on our minds recently.

Still, this is pretty fucking irresponsible.
But practically, I agree; say you'll need to see all three quotes.
I assume the work hasn't been done yet?

I don't know if it's still going but the leasehold advisory service has an advice line and will be able to tell you exactly what needs to have happened and if you are liable for this bill. Google them.

If you're not happy with your current property management company you can ditch them and appoint one of your own choice, I think 50 % of the owners have to agree to do this. Not sure of the details as DH dealt with it in our case.

Sorry that came across quite shitty, just surprised something like that doesn't stick in your mind. Has the work been done? Is there time to appeal?

Hey thanks the website is great, I wonder if this counts as major works? £22.5k sounds pretty major. If so we should have received at least two estimates.

Major works is anything that is over £250 and therefore requires a Section 20.

Is the work necessary? If so then it's a question of is £22k reasonable for it including project man charges

We also tend to get other bits done when we have scaffolding up to be efficient-ie drains cleaned and roof checked. We oven the freehold so know it's needed stuff.

Often your lease will cover things like

External paining every 7 years and internals every 5. So the place stays nice.

But most freeholders will charge a reserve charge each year to collect these costs over 7 years. Did your solicitor not advise this when you bought?

The solicitor when we bought was useless. It was 10 years ago but I don't remember him saying anything about the service charge.

We've had the communal hallway decorated etc which I assume came out of the service charge.

My aunt got lumbered with a 15k bill to decorate the communal area- x 6 flats- license to print money, freeholder doesn’t care to haggle. My aunt had to take equity release and her neighbours a second mortgage- disgusting!

I would strongly recommend calling the leasehold advisory service and speaking to them about your options. Even if notice was properly served you can challenge the cost at a tribunal if it is unreasonably high. I have had to do this in the past - it's horribly stressful but we did win and costs were reduced. Sadly many freeholders/management companies do rinse leaseholders and often get away with it. Best to know your rights and your options from experts who deal with this stuff day in day out. Good luck.

Most freeholds have a sinking fund to cover, or partly cover, expected maintenance (such as exterior decoration) that happens every number of years. A sinking fund should show up on your annual statement of accounts from the freeholder.