I live in a close of 12 shared-ownership houses in an area containing 25 more units wholly rented from a registered social landlord. The service charges are calculated on the total number of units and then allocated to each home. The 2001 calculation of service charge sheet "including 15% management charge" shows that the charges for the shared-ownership properties are £5.56 a month. But on top of the rent, insurance and service charge the landlord has charged a further £12.17 a month management charge. Is it right to include management charges in the service charge and then charge a further 219% for collecting them?
The management charge for shared ownership covers rent collection, arrears chasing, handling building insurance administration, all other customer service, advice and information. For rented homes it is absorbed within the overall rent charged.
Where additional services are given – such as estate cleaning, gardening and repairs – any managing agent is entitled to levy a charge and 15% is quite normal.
Such costs should not come as a surprise though, and the RSL should have made all costs perfectly clear before the sale went ahead.
Steve Walker, chief executive, Tower Homes; group director of regeneration and business initiatives, London and Quadrant
If the charges already included the 15% management charge they cannot add another one. But maybe the £12.17 they charged was to cover something that they could charge for but they have misdescribed it? You should ask them to explain what it is for.
If, after their explanation, it still seems unreasonable, you can use their complaints procedure, and ultimately go to the independent housing ombudsman.
You could go straight to the Leasehold Valuation Tribunal, but there is a fee, and it is not usually any quicker.
Catherine Hand, Partner at solicitor, Jenkins & Hand
Kind hearts backfire
Mr E and his brother Mr B, have been living in a three-bed property for the past 12 years or so, originally as part of a housing co-op. Four years ago, another co-op member recently rendered homeless, Ms G, asked to lodge with them. Mr E and Mr B agreed, on condition that she kept to the house rules. But once she had moved in, Ms G was noisy, had parties, behaved generally antisocially and eventually assaulted Mr B. It later transpired that she had left her previous home because of her antisocial activities. When the council took over the management of the co-op properties, Mr E and Mr B contacted it to complain. Ms G was offered alternative accommodation, which she refused. What can Mr E and Mr B do, if anything? Under the co-op, they were under licence, renewing these annually. As far as they are aware, the council has not signed them up on proper tenancy agreements. Can they therefore challenge Ms G's right to take over a tenancy without their agreement?
As I understand this situation, Ms G is in the brothers' flat by their invitation. Effectively, they are her landlord, and because they are resident she is excluded from section 3 of the 1977 Protection from Eviction Act, which means they need not go to court to evict her. The brothers can withdraw their permission at any time and get her to leave, whether their occupancy is a tenancy or a licence.
John Bryant, Policy officer, National Housing Federation
The question here is what Ms G's status is. She sounds like a lodger, in which case Mr E and Mr B can end her licence to stay there by giving reasonable notice and then, if she does not go, obtaining a court order.
But, given the number of years this has gone on, perhaps the council is treating all three as joint tenants, or Ms G as a subtenant? If she is paying rent to the council, rather than Mr E and Mr B, she is clearly not being treated as their lodger. Mr E and Mr B need to talk to a council officer to see what status it thinks Ms G has.
Catherine Hand, Partner at solicitor, Jenkins & Hand
Source
Housing Today
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