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unreasonable service and maintenance charges?

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Jules001 | 10:21 Mon 26th Mar 2007 | Law
4 Answers
my aunt owns her flat which is in a block, the majority of tenants are Council tenants. I am a little sketchy on all the finer details of this, but basically the Management Company or Council are proposing some works on the building (new windows and some pipe work for boilers and heating). My aunt has been told that she needs to pay an extortionate amount towards this (over 50K) and has been told that she will be evicted if she doesn't pay. My questions are firstly can she be evicted if she has bought her flat, obviously she doesn't hold the Freehold. I believe not, but would like confirmation of this. Secondly am I correct in thinking that the cost of the works should be shared proportionately between the flats regardless of whether they are privately owned or council, with the council picking up the tab for their properties. The residents even if they have replaced their own windows are being told they will need to be ripped out so that the block can all look the same.
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are you sure that that is the figure that your aunt is being asked for and not the total works?
Does she pay a monthly fee already? The management company for my flat costs me �50 a month (very very expensive for what is is) but we are all directors and get to see the financial accounts and decide where the money is spent.
Check her lease and what it says about maintenance work
You need to find out exactly what shes being asked to contribute and what the accounts already hold. Ask to see copies of the quotes for work if necessary as this does seem to be an extortionate amount of money to ask per flat just for new windows and boiler.
Just to add, if she does not pay to the maintenance company, depending on who runs it, then the lease can be taken away from her. This, in theory, means that she will have no right to live there and will forfeit her flat.
Has she got a mortgage? maybe a call to them may help clarify her position re: the lease
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few more details here thanks for the help so far. This is the cost to my aunt not the whole cost of works. I know she pays a service/management fee, I believe it is paid yearly. She doesn't have a mortgage so no help there. I have advised her that she and the other residents affected by this should see a Solicitor and get some legal representation, but if it is difficult to organise everybody, if necessary she should go alone I think that the 'ostrich approach' is being adopted at the moment, but I am badgering her to deal with it.
Stress to her the importance of this. If she doesnt pay and its part of her lease agreement than they can take her home away from her.
I hope someone with more knowledge of this comes along and can help you further.
Get her to ask for the estimates and total costs for the job as well as what exactly is involved in the works.
Check her lease to see what it actually says but, almost certainly, her flat could be forfeit. In privately owned blocks there are legal requirements about how estimates are provided for major works, and what information has to be given to the leaseholders and what rights they have in these cases. I think these also apply to council owned blocks. She should contact
www.lease-advice.org
who can give information.

Some Councils agree to large service charge payments such as these being made over a period of years - she should try to negotiate this.

She has fallen foul of one of the disadvantages of buying Council property in a block of flats - major upgrading is often very expensive. She most certainly should not ignore this - it will not go away!

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