Leasehold property owners pay a service charge to their building’s freeholder or landlord. A management agent is usually contracted to maintain communal services such as cleaning, repairs and insurance. There is no cap on these charges and paying them is usually a condition of the lease.
In a statement, One Housing told BBC London it did not profit from service charges. It said: “Across the country, charges for services such as insurance and energy costs have continued to rise very steeply. Furthermore, due to the timber-frame construction of the building [it] is subject to high insurance fees.”
Patrick says he has also received an extra bill for more than £9,000. Because his bills were “estimates”, he’s now been told be needs to pay “actual” costs relating to previous years. So he needs to find this sum, on top of his monthly service charges, the rent he pays for the part of the property he does not own, and his mortgage.
One Housing said: “The charges Mr Duffy and his partner have received relate to total costs incurred over three financial years, equating to an overall balancing charge of £9,257.72 as the services provided during the three-year period cost more than estimated.
“In 2021-22, we were informed by the managing agent that the actual cost of insuring the building had more than doubled, which was not known at the time of the estimated charges being set. This is unfortunately the main factor in the recent estimated charges (set using the actual spends) being increased alongside any balancing recovery.
“We acknowledge that these charges are higher than anticipated and appreciate that any cost increase can be concerning and unwelcome.”
Credit: Source link
