Notes

Why Is My Service Charge Much More Expensive Than My Neighboring Block?
The difficulty with comparing service charge costs between individual blocks of flats may be explained by considering in many factors. The method of calculation may differ per 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 use a significant relation to the maintenance and running costs. In addition, the constant maintenance and repairs history and sinking fund provision may also vary considerably making comparisons of the level of freehold service charges extremely difficult. Not only will the freehold property and its condition be unique, however the property services necessary in managing and the dwelling could be quite different with the requirements from the property lease.
In summary you ought not compare apples with oranges and in some cases you'll probably find explanations for virtually any two landlord service charges being different. Here are some possible explanations which may be applicable in comparing one typical block management scenario with another.
(i) You may have a very more comprehensive group of services funded through your service charge (e.g. site manager or porter, all windows cleaned, lifts, vehicle, entry systems etc.).
(ii) Does your neighbour's service charge include sinking funds to allow for future repairs and maintenance? If not, their charge is likely to fluctuate dramatically from year to year as large expenditure falls due. Large items could well be charged for separately whenever they arise being additional to your regular landlord service charge.
(iii) How many individual flats come in the neighbouring building? Smaller blocks of flats with less units tend to have a very higher maintenance charge per unit. Overall maintenance pricing is often disproportionately costlier in which the expense is shared by fewer lessees. If service charges are distributed across a lot of flats it follows that the proportion per leaseholder is going to be less. For example, a roof repair provided for only 6 flats is costly compared to the same facility provided for 32.
(iv) Do you have extensive gardens or perhaps your block an old building? If so, your merchandise charge could possibly be adversely affected. The presence of asbestos as an example can use a dramatic influence on the costs of the works being completed.
(v) What size is your apartment? The method of service charge calculation must be stated in the exact property lease. richmond property management could be apportioned by mention of the ground section of your apartment. If you own a couple bedroom apartment and your friend owns a studio apartment this can create a significant difference. Some leases simply share all costs equally which can clearly alter the portion payable quite significantly derived from one of block to a higher.
(vi) The location and access arrangements to execute works may also influence service charge. Where service contractors are unable to erect scaffold, or perform their works inside a economical manner more time and charges will result. Difficulties with materials deliveries, parking, craneage, disposal of rubbish etc will all provide an affect whereas simple standard procedures without any special requirements won't attract reasonably limited.
Having checked your lease as well as the other matters described above, you'll probably still consider you're being overcharged. As a long suffering leaseholder there are many of options available. Why not consider asking your landlord to employ a professionally qualified property managing agent. If you insist which a firm is appointed that's Regulated by RICS (The Royal Institution of Chartered Surveyors) the service standards they should work to are set in the RICS Code. This Code serves to safeguard clients from unscrupulous practices and in addition requires auditing and protection measures are put available being be subject to regular inspection from the institution.
Other options may also be open to disgruntled leaseholders including taking on their Right to Manage or indeed Enfranchisement the location where the freehold can be purchased by the majority from the lessees. However these alternatives aren't always possible and can take some time requiring the co-operation of others to initiate. Whatever option is to be found, I trust the above assists as being a useful point of experience of help those who feel they might be be subject to overcharging.
I offer further explore the topic of Enfranchisement as well as the Leaseholders' Right to manage (RTM) inside a separate article since this particular rights are essential and warrant specific attention and explanation.
It is needless to say prudent to look into all from the above matters either before or during the time of investing in a leasehold property in the block of flats. Generally the management and maintenance costs will tend to be reflected inside service charge from a property over a period of years. A conveyancing solicitor should request this info in their investigation and appearance while using freehold block management agent. Please be aware however that this opportunity and procedures involved are likely to vary on location. The procedures described focus on England and Wales and are therefore not applicable to other countries.
Additional service charge advice and support could possibly be extracted from an excellent block management agent providing residential freehold property services for blocks of flats. Readers are encouraged to look for block management agent services which can be benchmarked for the quality standards determined by The Royal Institution of Chartered Surveyors (RICS). These professional practices or management agents benchmark their house services to the RICS Service Charge Residential Management Code. which was approved by the housing minister last year.
RICS Chartered Surveyors which are 'Regulated by RICS' must comply with this code which is rigorously enforced with the RICS which performs regular inspections of the member firms.
Regulation also secures all kinds of other benefits for freehold management companies, landlords and leaseholders. Service charge monies have to be safely managed in a secure ring fenced client bank account with funds being insured and susceptible to regular checking and bank reconciliation. In addition the assistance provided must attain the required standards Typical block management agent duties are covered beneath the RICS Service Charge Code which may usually include some in 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 in the Property Lease and
Company Secretary Services in Assisting Freehold, RTM and Property Management Companies with Essential Management Company Administration.
Website: http://www.masonre.com.au/