The difficulty with comparing service charge costs between individual blocks of flats could be explained by considering in a number of factors. The method of calculation may differ for every block in accordance with any variance in leasehold arrangements. The property size, type, height, condition, age, service facilities, plant, lifts, equipment and lease particulars can all have a very significant influence on taking care and running costs. In addition, the maintenance and repairs background and sinking fund provision could also vary considerably making comparisons of the amount of freehold service charges very difficult. Not only will the freehold property and it is condition be unique, though the property services necessary in managing tweaking the building may be quite different with the requirements in the property lease.

In summary you should not compare apples with oranges and perhaps you can likely find explanations for just about any two landlord service charges being different. Here are some possible explanations which might be applicable in comparing one typical block management scenario with another.

(i) You may have a very more comprehensive group of services funded using your service charge (e.g. site manager or porter, all windows cleaned, lifts, airport parking, entry systems etc.).

(ii) Does your neighbour’s service charge include sinking funds to allow for future repairs and maintenance? If not, their charge will probably fluctuate dramatically from year to year as large expenditure falls due. Large items is probably charged for separately whenever they arise being additional to your regular landlord service charge.

(iii) How many individual flats have been in the neighbouring building? Smaller blocks of flats with less units tend to have a very higher maintenance charge per unit. Overall maintenance prices are often disproportionately higher priced the place that the cost is shared by fewer lessees. If service charges are spread across a lot of flats it follows how the proportion for every leaseholder will be less. For property manager richmond , a roof repair ship to only 6 flats is expensive when compared to the same facility ship to 32.

(iv) Do you have extensive gardens or perhaps your block an old building? If so, your service charge could possibly be adversely affected. The presence of asbestos as an example can have a very dramatic influence on the expense of any works being completed.

(v) What size will be your apartment? The method of service charge calculation should be stated in the property lease. It could be apportioned by mention of the the ground division of your apartment. If you own a couple bedroom apartment plus your friend owns a studio apartment than the can certainly produce a significant difference. Some leases simply share all costs equally which can clearly affect the portion payable quite significantly from one block to a higher.

(vi) The location and access arrangements to carry out works could also affect service charge. Where service contractors cannot erect scaffold, or execute their works in a affordable manner more time and costs will result. Difficulties with materials deliveries, parking, craneage, disposal of rubbish etc will all offer an affect whereas simple standard procedures without special requirements won’t attract a premium.

Having checked your lease and also the other matters described above, you’ll probably still consider you’re being overcharged. As a long suffering leaseholder there are a variety of possibilities. Why not consider asking your landlord to employ a professionally qualified property managing agent. If you insist that the firm is appointed that is Regulated by RICS (The Royal Institution of Chartered Surveyors) the service standards they must work to are set outside in the RICS Code. This Code serves to guard clients from unscrupulous practices and likewise requires auditing and protection measures are put in place being at the mercy of regular inspection through the institution.

Other options could also be ready to accept disgruntled leaseholders including taking on their Right to Manage or indeed Enfranchisement where the freehold could be purchased by way of a majority from the lessees. However these alternatives are certainly not always possible and will devote some time requiring the co-operation of others to initiate. Whatever option would be found, I trust the above behaves as a useful point of reference to help people that feel they are often susceptible to overcharging.

I offer further explore the subject of Enfranchisement along with the Leaseholders’ Right to manage (RTM) in a separate article simply because this particular rights are important and warrant specific attention and explanation.

It is needless to say prudent to look into all of the above matters either before or during the time of purchasing a leasehold property inside a block of flats. Generally the management and maintenance costs will tend to be reflected inside service charge of the property a duration of years. A conveyancing solicitor should request these records of their investigation and search with all the freehold block management agent. Please be aware however that the opportunity and procedures involved will certainly vary on location. The procedures described give full attention to England and Wales and they are therefore not applicable to other countries.

Additional service charge advice and support may be from a fantastic block management agent providing residential freehold property services for blocks of flats. Readers should look for block management agent services which can be benchmarked to the quality standards lay out by The Royal Institution of Chartered Surveyors (RICS). These professional practices or management agents benchmark their property services on the RICS Service Charge Residential Management Code. that was approved with the housing minister during 2009.

RICS Chartered Surveyors which are ‘Regulated by RICS’ must adhere to this code that’s rigorously enforced with the RICS which carries out regular inspections of these member firms.

Regulation also secures a number of other benefits for freehold management companies, landlords and leaseholders. Service charge monies must be safely managed inside a secure ring fenced client bank account with funds being insured and at the mercy of regular checking and bank reconciliation. In addition the assistance provided must achieve the required standards Typical block management agent duties are covered within the RICS Service Charge Code which will usually include some with the following:-

Effective Procedures for Property Maintenance and Repairs,

Responding to Leaseholder Enquiries from Solicitors on Property Sales,

All Aspects of Service Charges comprising Financial Control, Expenditure, Budgeting, Service Charge & Ground Rent Collection and Accounting,

Regular Client Reporting to Freehold Management Companies, Residents, Lessees, RTM’s or Landlords.

Independent Lease Management

Control and Compliance Procedures in Upholding the Covenants with the Property Lease and

Company Secretary Services in Assisting Freehold, RTM and Property Management Companies with Essential Management Company Administration.