Chris5-0

Myself and my missus moved into our apartment in 2002. Due to what i believe to be mismanagment and incompetance on the management committee's behalf i have witheld monthly maintennance payments for a good while.

After attendind a few meetings where the 'committe' which seemed to comprise a secretary who was getting paid an aweful lot and a couple of the more elder residents i became more and more disturbed. Work was being given out without proper quotes being taken and when they were they were grossly over priced. Work that was done was substandard, (we paid over 1500 pounds for the windows of the 24 apartments to be painted, most of the block is double glazed!) and services were either late or non existant.

Any attempts by myself and other residents to bring up points was met with disdain and quickly moved along (i very nearly lost it with an older member of the committe when he told me he believed we had spoken enough about a subject and that was that!). No ideas or suggestions were taken on board and the service charge rose twice without consultation.

The final meeting i attended rose the spectre of another rise in the monthly charge 'as we don't have enough money again'. This was vociferiously talked down by myself and other residents, the point being made by another resident that the committee of 3 seemed to make decisions unilaterally without consultation of owners. This didn't go down well at all!! I and another owner then spoke up and said we weren't happy with the committee and felt it time for a change. After much grumbling the secretary said they would ask for nominations for posts on the committee.

Good i thought, action at last. A plan was formulated amongst owners to put forward a resident to become secretary to get things back on track again. The nomination was put forward.

A week or so later we all got a nice letter saying that because no nominations had been forwarded no 'election' would take place and the committee would stand. It seemed that because the resident had rented the flat in the past his name was not first on their records and needed changing over again, which unfortunately wasn't done in time for nominations! Great.

Now, 2 1/2 years down the line we find ourselves with a new management committee, which belongs to a national management company who seemed to have appeared on the scene. I have emailed and written to this company (who i hasten to add are very reputable) to find out the course of events.

The explanation i got was that of, we were instructed by the residents committee to take over running the complex, a number of the old committee are staying on with us in roles. When pressed by myself as to the legality of the takeover they seemed genuinly shocked we had not been consulted as owners and a vote not taken. They find the comments i made 'interesting' and are looking into it.

I don't know anything about law like this, all i know is they are demanding the money i withheld and have sent a few tasty letters regarding this and that today we got a letter saying we all had to take down our satellite dishes or we would be breaching our lease!

Basically i think a vote should have been taken and without it i feel appointing this company (by the old committee without consultation) wrong. I also would like opinion on their legitimacy in demmanding monies owed to the old management company which i think has now ceased. (there is also an issue with monies stolen by a committee member in the past and never traced but thats by the by!!)

Any help anybody?

Milamber

iTrader: (2)

A nice simple question then!

It's not property management law that we are dealing with it's straight forward company law and conveyancing. I do say that with tongue planted firmly in cheek though.

There are just too many issues for a proper legal answer, you NEED to see a suitable solicitor. The biggest problem you will face is that you wll NEVER sell the flat with those arrears, who do you pay it to though? thats the question that you need to ask.

Chris5-0

POO!!!

Thanks for the reply, i'll get onto it asap to get it sorted out.

Many thanks.

Chris.

Milamber

iTrader: (2)

Did they get 75% of the vote before selling the company is an important thing to research before you do anything, probably the most important.

The 2nd most important is for you to clear those arrears. You can risk many things in life but never your home......

Where are you based? pm me if you like to keep it private.

fast bloke

As above, you need to find yourself a decent solicitor. The first question that springs to mind is who owns the freehold. If the old committee owned the freehold, then you (all the owners) should have had the option to collectively buy out the freehold providing there are more than 23 years left of your current lease through the process known as enfranchisement (leases would usually be set up for 99 or 999 years, so you probably would have) - If the freeholder is someone other than the old committee then the freeholder would have to rubber stamp the transaction to the new company. The leaseholders would still have the right to buy the freehold subject to an agreed valuation, so if you think you can swing all the other owners into your way of thinking, you can set a new management company, the directors being all the current leaseholders and then buy the freehold for the entire building. That way all the owners have an equal say in the future maintenance/development decisions of the building.

If the freeholder and the new management committee are unconnected, then you might be able to avoid paying the backdated charges if you get the freeholders agreement.

fast bloke

I wouldn't worry about the management company arrears yet. They can't blacklist your credit about payments for disputed services until they take you to court. If it gies to court the old management committee will need to expalin their side, which from the sound of your description, they won't be able to do. If the court finds in their favour you will have 28 days to pay with no mark on your credit file. If they find in your favour you wont have to pay.

Be careful not to confuse service charge arrears with mortgage arrears - **** about with the mortgage company and you will find yourself looking for a cardboard box to sleep in - the main difference is that the mortgage co hold a secured charge over your property, while the management company do not

Chris5-0

Thanks very much for all the replies. I know there wasnt a vote or 75% agreement to move management companies so might have a look there first. As for the rest i'll go into it in detail over next few days.

Thanks again.

Chris.

chris singleton

Most management companies on Leasehold Properties are run by the members of the company (who are usually the lessees). Sometimes a couple of the lessees will be appointed by to act as director/secretary of the company or a firm of managing agents will be appointed to carry out the duties of the management company so that the lessees don't have to deal with the day to day hassle.

It sounds like the old firm of managing agents have been given the chop and a new firm appointed, I doubt that the management company itself has ceased and a new company formed, that doesn't make sense.

Unfortunately you will have to pay the arrears if you ever intend on selling the flat. It's unfortunate that the companies affairs have been mismanaged but everyone is no doubt in the same boat.

Nearly everyone I know who owns a flat complains of high service charges, it's the downfall of owning a flat.

Sorry, not been much help but there's not an awful lot you can do

chris singleton

As mentioned above, the freeholder and management company are normally two seperate entities.

If the management company own the freehold reversion and you are a member of the company then effectively you own a part share of the freehold.

Doesn't really help your case either way unfortunately..


Chris