Ms L is leaseholder of a registered provider (housing association) paying £300 per month in service charges and with an end of year account showing nothing more owing above estimated budget.
To their surprise, all the leaseholders then received a £2000 bill for “third party” managing agents, although they already pay an 18% administration fee to the landlord.
The landlord would not provide further details about this third party charge.
LEASE advised that this sounded strange and that, on the face of it, Ms L (and the other leaseholders) should not pay two lots of management fees amounting to 28% in total.
LEASE advised that ultimately an application can be made to the First-tier Tribunal (Property Chamber) to ask them to determine whether this charge was payable and/or reasonable.
In the end, strengthened by the advice from LEASE, the leaseholders challenged the landlords and achieved a reduction in the management fees from 20% to 8%.
Ms L said: “The advice from LEASE was very helpful. Also, it was supporting and motivating for all the residents who also spoke to LEASE. So thank you very much for all your help.”
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