| Topic: | Re:Re:Re:Re:Re:Re:High service charges compared to the brochure at Barratt's Great West Quarter. | |
| Posted by: | Bernadette Paul | |
| Date/Time: | 17/03/13 08:32:00 |
| I don't think service charges have anything at all to do with council tax. Service charges are a moveable feast payable to the landlord or his agent for things such as property insurance and maintenance. Usually the charges are completely over the top but unfortunately you are stuck with them. If you live in a property that is served by a lift, your insurance will be huge. Agents can charge pretty much what they like for their services, which are usually non existent but expensive nevertheless. However, if there are fees levied for any major works they must be justified. My nephew currently has several leasehold shops in the area all of which were bordering on derelict when he took them over. He has had to spend something like £100,000 on each to fit them out including supplying flooring and walls plus necessary shopfittings and cold rooms etc., in all cases the service charges are several thousand pounds. He is plagued with leaks in 3 of the premises and yet no works are done to remedy these by the landlords. It is now costing a fortune in legal fees to try and get them to take some action. Apart from the insurance elements he receives absolutely no service on any of his shops yet has to pay huge service charges for the privilege. I can remember my firm acting on the sale of a leasehold flat on the Ivybridge estate where the outstanding service charges to the council exceeded the sale price of the flat. I can’t remember whether the council had replaced the roof or the boiler or both but the costs were phenomenal. The owner had died and there was no money in the estate to make up the shortfall. Can’t remember what the outcome was but suffice to say, caveat emptor in all cases when purchasing leasehold properties. |