Service Charge

A recent survey carried out by online property solution provider, www.leaseholdersupport.co.uk has revealed that a neighbour not paying their service charge is the number one complaint amongst flat owners. Resident Managing Companies who are responsible for the running of their own block of flats are the number one victim of service charge arrears according to the survey. Feedback from the survey reported that most blocks of flats have encountered problems with neighbours ignoring requests for payments and not attending residents meetings. The Association of Residential Managing Agents (ARMA) who focus exclusively on matters relating to the management of residential leasehold blocks of flats also revealed in their Annual Report 2005-6, that over 25% of service charge complaints were about undelivered service charge payments.

Mary Anne Bowring, creator of Leaseholders Supports comments: Asking your neighbour to pay their outstanding service charge is difficult as it can cause bad feeling. Taking legal action should be the last resort as it can be costly, usually it has to be pre-funded by the good guys, and cause an uncomfortable situation, particularly if both the both parties are resident. If reminder letters are being ignored then try a legal letter which complies with the Civil Procedure Rules. Paying service charges is one of the leaseholders obligations set out in the lease. When buying a property, the flat owner should be advised on their duties under the lease which commits them to abide by the leaseholders covenants. www.leaseholdersupport.co.uk delivers solutions to small blocks of flats who cannot afford the luxury of full management. This online resource will manage your service charge accounts and offers a no win-no fee litigation service.