Monday, 22 December 2014

Retaining my service charge payments for over a year

Posted in: Need to Know | Ask the Experts

12/03/2012 9:21 am

Unsuitable or offensive? Report this discussion

Sort: Newest first | Oldest first

Author

Message

Kim Coleman

Kim Coleman

Posts: 20

12/03/2012 10:11 am

I believe not if you and the other wrote to them.  Go off and google

Unsuitable or offensive? Report this reply

Anonymous

Anonymous

12/03/2012 11:51 am

Well if they have admitted fault then they should have reduced your charge accordingly?  Legally I expect your lease allows for interest to be charged.

Plus a court would deem it unreasonable for you to withhold the entire service charge, you could just withhold the disputed amount.  If you have Ground Rent charged through the service charges as well then you are in even more of a sticky situation if they decide to pursue forfeiture...  To me it sounds like currently they have the upperhand.

I suggest you google the "Leasehold Advisory Service" and do some reading up ;-)

Unsuitable or offensive? Report this reply

neil ormsby

neil ormsby

Location: SE25
Posts: 3

14/03/2012 1:26 pm

I was told the reason I had to pay interest is because of the clause 3.1 in the Leaseholder covenants, however when you read the clause is says it is rent related 'to pay specific rents', nothing about service charges incurring interest.


However the officer then goes on to say, that and any other monies...
I find this a bit ambiguous to say the least, seeing as there is nothing in the Leaseholder covenants for service charges that start at clause 7.

Unsuitable or offensive? Report this reply

Scott Parker

Scott Parker

Posts: 5

15/03/2012 8:16 am

it is likely that the service charge is reserved as rent, the interest clause will then kick in notting hill choose to enforce it.

If you write to notting hill stating the proportion of the service charge you are withholding and why, pay the rest then they will adjust your account as they are a decent landlord.

It would be a bad tactic to withold all the service charge.

Unsuitable or offensive? Report this reply

Anonymous

Anonymous

15/03/2012 9:34 am

Surely if they can charge you interest on due money, you should be allowed to charge interest on any rebates due to you.  You could write to them saying if they drop their request of interest you will drop yours.

Unsuitable or offensive? Report this reply

Jasmine Ellicott

Jasmine Ellicott

Posts: 18

15/03/2012 9:56 am

They can charge you interest.

Have you put the matter to an LVT (as described in your statement of rights) because until you do this they can argue that you have not contested the charges, and they are fully due.

Unsuitable or offensive? Report this reply

Anonymous

Anonymous

15/03/2012 10:24 am

One idea,

1 - You are withholding payments as you have been charged fro services that have not been provided (Lifts), if they agree to this statement then they should have carried forward a creidt for the overcharge through your service charge accounts.  Service charge accounts should be issued at the latest  6 months after their financial year ends. 

In respect to any refund, you need to understand the balance of the service charge accounts as a whole, as you will not get a refund pertinent to 1 service, it is the overall surplus / deficit covering the provision of all services that should inform this decision.

You also comment that charges are unreasoble? this is quite compicated to challenge, there are clear statutory protections for some service costs, info on this is easily accessible via the Leasehold Advisory Service Website.  Challenging "Reasonableness" of charges that fall outside of this category can be tough, if you wish to pursue it you will need to find comparitive costs from like schemes. 

Hope this helps a little, if you provide a bit more detail I may be able to expand upon my advice.

 Good luck

Unsuitable or offensive? Report this reply

Anonymous

Anonymous

15/03/2012 11:29 am

If the covenant states they can charge you interest then they can charge you interest.  Most leases refer to "rent" yet this is widely accepted within the legal profession as also including Ground Rent and/or Service Charges.

No you cannot charge it back - not unless the proviso's of the lease allow it - which it won't.  If you see this as unfair - then tough - people should read their leases and understand what they are signing before doing so.  Most people don't.

Unless you have exhausted the dispute with the HA and asked for a full breakdown and justification of costs a LVT will refuse your claim until that point. 

You still should be paying all portions of the service charge however witholding payment for the portion you have already disagreed with.  A Court or LVT will advise it is unreasonable of you to withhold complete payment if you are only disputing a portion of the overall charge.

You will struggle to argue/prove that they are incompetant or bad in their management technique.

Unsuitable or offensive? Report this reply

Rate this topic

  • 1 star out of 5
  • 2 stars out of 5
  • 3 stars out of 5
  • 4 stars out of 5
  • 5 stars out of 5

You must be signed in to rate.

Post a Reply

You must sign in to rate this topic or make a post

sign in register

Why not register?

Registration allows you to sign up for newsletters, comment on articles, add posts in the forums, quiz our panel of experts, and save articles and jobs in the My IH section.

Register now

Newsletter Sign-up

Most active members

Most recent posts

  • From Rose007, 21/12/2014 4:22 pm in Death, Secure Tenancy, Downsizing and relatives moving in

    I advise you to seek proper advice on this.  There are many people that provide advice on this site that is not necessarily correct.  Have you now succeeded to the tenancy or is that still being looked into.  The Localism Act introduced further rules relating to succession.  caselaw is Newport CC v Charles considered by court of appeal.  The son kept up a pretence his mother was still alive when she had died a number of years previous.  The initial court hearing granted possession under Ground 16 which was overturned on appeal as more than 12 months had passed ...

  • posted Anonymously, 13/12/2014 5:01 pm in Shared Ownership and extending the lease

    Hi Again

  • From Zoheb Chaudhry, 27/11/2014 10:10 am in damp/ mould

    Hello there dawn,

  • From Zoheb Chaudhry, 27/11/2014 9:49 am in Damp,mould and disrepair- Professional Advice Please

    Hello there,

  • posted Anonymously, 24/11/2014 4:58 pm in Couple one over 65 bedroom tax advice

    I am over 65 and live in a small council flat. I suffer from spinal arthritis as well as other health problems. I have decided to swap my flat with a housing association tenant whose flat is slightly larger than mine I.e an extra small bedroom. I am looking ahead as I may eventually be confined to a wheel chair. I have been told that I would not have to pay the bedroom tax.  I live on my own and would be living on my own if the swap goes through. Does anyone know if I have to pay ...

  • From My own private domicile, 24/11/2014 4:36 pm in Mutual Exchanges

    The legislation that you're looking at relates to statutory overcrowding, you're looking at Part X of the Housing Act 1985.  Mutual exhanges are in s.92, which is Part IV. 

  • From given up , 21/11/2014 7:07 pm in Service Charge Increase Legal? Moral?

    Its all over..Nottingjham Community Housing Association have successully had my cl;aim  for comepsanation for failing to provide the standards of care and support expected in their sheltered housing scheme thrown out on a legal technicality! . What a Farce. Social Housing? I dont Think So..and i have to pay half their  costs!

  • From Sarah Adams, 16/11/2014 3:46 pm in Is there an obligation to carryout gas & electric safety checks on Mutual Exchanges

    I do apologise if I am interupting anyones conversation (first time using this website)

  • From Paul Kennedy, 12/11/2014 6:11 pm in Is a Housing Association / Housing Co-operative tenant

    One point worth mentioning - a tenant who owns property elsewhere will not be entitled to Housing Benefit.

  • From Dawn Young, 26/10/2014 4:34 pm in temporary decant

    I am in a hotel i cant get it re directed here i asked.

IH Subscription