Service Charges Ha London Examples

[Donnach76]

Hi guys, we are just about to renegotiate our contract with our managing agent, interesed at some real examples of what other people are paying. So if you could let me know some specific data: area, type of flat (1-2-3bed etc) and monthly service charge amount, and if it includes sinking fund or not, I would be forever gratefull. Thank you, Donna

[Buenchico]

Erm, how long is a piece of string? While you're trying to work it out (or waiting for possible replies from people with personal experience), here are a few quotes to guide you:

Quote 1:
"ARMA (the Association of Residential Managing Agents) estimates the average service charge bill in London at around £1,800 to £2,000 a year"

Source:
https://hoa.org.uk/advice/guides-for-homeowners/i-am-managing-2/should-i-extend-my-lease/service-charges-and-maintenance-companies-problems-with-your-leasehold-property/

Quote 2 (from 3 years ago):
"Buyers of apartments in new-build towers not only have to pay sky-high prices but also face soaring annual service charges that now average £2,777 a year, according to new research.

Some of the worst service charges are found in new apartment blocks lining the River Thames in London, where residents will have to pay nearly £7,000 a year on a two-bed flat"

Source:
https://www.theguardian.com/money/2016/mar/09/service-charges-soar-to-average-2777-per-year-for-new-build-flats

Quote 3 (from 2 years ago):
"A £7,600-plus service charge on my flat above a shop is bankrupting me"

Source:
https://www.theguardian.com/money/2017/sep/01/service-charge-flat-bankrupting-me-heinz-property

Quote 4:
"A new build property in Lambeth, South London, is charging leaseholders an eye-watering £7 per square foot service charge. This means if you bought an 800 square foot flat, you’d be looking at hefty £5,600 charges. You’ll usually pay less if you’re further away from the centre of London. For example, one property coming onto the market this year in Croydon, part of outer South London, carries a service charge of £1.55 per square foot, making annual service charges for an 800 square foot flat a more reasonable £1,240 a year"

Source:
https://www.directline.com/home-cover/property-service-charges

[goodgoalie]

Is your property leasehold? If so, have you thought about getting together with other leaseholders and buying the freehold - the present freeholder has to sell it to you if more than two-thirds of qualifying leaseholders want to buy it.

https://www.penningtons.co.uk/expertise/business/real-estate/property-entrepreneurs/property-entrepreneurs-faqs/faqs-buying-the-freehold-of-flats-with-other-tenants-collective-enfranchisement/

[Donnach76]

Thank you Buenchico, saw them already :-)

[Donnach76]

Goodgolie, it is an estate of 52 shared ownership flats, all leasehold, and as too many of us have not staricased to full value yet, the freehold option is not for us just yet. We will revisit once more of us reach full ownership. We have already removed HA as our managing agent (4years ago the sc went from 149pm to 256pm! With no explanation) and appointed our own. We agreed sc at 125pm, by now it is just over 130pm. But we know we have massive roof repair in front of us, which will eat into our sinking fund. So we wanted to raise the sc to 150-160pm to replenish it and some of our fellow tennants are very upset saying it is too much. I am trying to gather examples of other sc, to show my fellow tennants tbat they are being unreasonable.