please sum1 explain this for me please???SERVICE CHARGE BUDGET

[dee2912]

I have an apartment in prescott an i am charged an annual service charge budget which is spilt up between the 24 apartments and i pay quarterly an amount of �268.13,on my breakdown list of what has to be paid by the 24 apartments owners is 1 thing: �600 "petrol interceptor" and management fees �5760.00 what are these for? these are just some of the things on the list and are divided by 24, but i am still paying �268.13 per month an money aint plentlyful am i being ripped off or what please help as im lost with this

[bednobs]

do you pay that per month OR per quarter?
management fees are the fees that the management company take to manage the appartments for you. For example, when i lived in a flat our management company used to organise quotes for gardening and window cleaning, and other maintenance, organise the insurance, do all the correspondence, the accounts and organise a yealy tennants meeting and hold it at their premises. As for petrol interceptor im sorry i have no idea

[Coppertop84]

We have a freehold house and have to pay a service charge to a management company. The annual cost is shared between the houses and flats in our close.

I think it pays for maintenance of the close (i.e. greenery, shrubs etc), amongst other things as well as covering insurance for the close - or so I think.

Wish we didn't have to pay it but what can you do.

[dee2912]

hi to both of you i pay quarterly, Thanks to both of you for your answers do you mind me askin how much you pay quarterly compared to mine as i have no idea if im paying to much or shud i query it as some of the things on it i havent a clue, i am paying �5,760.00 for buildings and public liability x 24 what excatly does that cover will it cover my building if it burns down or do i have to get my own

[dee2912]

sorry thats �5760.00 divided by 24 noy x

[bednobs]

yes buildings insurance covers the fabric of the building in case of disaster (someone driving into it; razed to the ground by fire; flood washes it away etc) It probably wont cover you for contents, and you will have to arrANGE your own insurance for that. you could always ring round local management agencies (yellow pages) and find out what their fees are and cmpare them to yours. Who appoints your management company anyway? Is it the freeholder? is it the residents?

[dee2912]

to be honest i have no idea they just sent me a letter every quarter requesting to be paid

[droopdrawers]

Hi, I life in a Leasehold property for which I pay �80 x 12.

This covers Window cleaning,gardening,building insurance, outside maintainance and electricity for the lighting on our little complex.

Sometimes I wonder why we have to pay so much but its one of those things that comes with living in Leasehold property.

DD

[minimonkey]

petrol interceptor is a drainage thing for the carpark to catch water run-off and de-pollute it before it goes into the surface water drain.......these are all things which apply to the running, maintenance and upkeep of the whole building so they just share it equally between all of you..it doean sound much �5k divided by 24

[cassa333]

I used to own a leasehold flat and the charges for the management company were horendous. Their charge far outweighed anything else on the bill.

We paid an astronomical amount for someone NOT to keep the 'gardens' weeded etc and the electric for 4 lichtbulbs in the stairwells to be on at night was more than my 2 bed flat used.

They get away with using their friends as contractors because no one checks up on them. If everyone were to question them and make a fuss they would have to be more accountable if nothing else.

[bednobs]

you need to find out who appointed the management company. Where i lived, there was a residents association (i think each flat owned a bit of the lease but i could be wrong) who appointed the management company. Ours was crap, so to cut a long story short i got some quotes from local ones, went to the residents committe, got myself elected as a director, changed the company (got the pointing, window cleaning and grass cutting done) then resigned and let them get on with it.