Estate Management Fee arrears

Get expert opinion. This is the place for new questions to be posted.
8 posts Page 1 of 1
 
 

flowerpot

User avatar
Posts: 143
Joined: Fri Feb 22, 2008 11:27 am
Location:

Post by flowerpot » Fri Sep 10, 2010 8:01 pm
Hi there,

I have to pay an estate management fee where I live, and have always paid it by standing order. The annual charge increased this year and I forgot to increase my standing order.

As a result I now have a small arrears situation and the company have passed this into the hands of a solicitor, without warning, which has caused an additional fee of £115. The arrears are £87. I can afford the arrears but not the charges.

The letter from the solicitors arrived today and is factually incorrect as it states as a leaseholder I am in in breach of my legal obligation to pay my service charge and administration fees the freeholder.

I am acutally not a leaseholder, but a freeholder, and what I am in arrears for Estate Management fees, which is something totally different.

I have offered to pay the amount owing to the Estate Management Company, but they say I cant now that its gone to the solicitors. The letter from the solicitors says pay the Estate Management Company.

I would like to know if the letter, being incorrect is enforceable?

many thanks
 
 

Shining

User avatar
Posts: 27019
Joined: Thu Sep 20, 2007 8:57 am
Location:

Post by Shining » Fri Sep 10, 2010 8:50 pm
I'm not sure flowerpot, but I'll bump this back up for you and hopefully someone will be able to advise. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

flowerpot

User avatar
Posts: 143
Joined: Fri Feb 22, 2008 11:27 am
Location:

Post by flowerpot » Fri Sep 10, 2010 9:07 pm
thanks Lesley
 
 

RHB

User avatar
Posts: 353
Joined: Fri Jan 02, 2009 4:27 pm
Location:

Post by RHB » Sat Sep 11, 2010 9:11 am
I don't think the wording comes into it. If you owe the money, you owe the money & the solicitors will have to be paid. I'm surprised you got no warning though before the solicitors got involved, how long have you owed the money for?
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:

Post by MelanieGiles » Sun Sep 12, 2010 9:34 pm
If the debt is due then the debt is correct and I would try and get it paid as quickly as possible. Perhaps your IP would let you make a slightly lower payment next month to accomodate this?
Regards, Melanie Giles, Insolvency Practitioner
 
 

flowerpot

User avatar
Posts: 143
Joined: Fri Feb 22, 2008 11:27 am
Location:

Post by flowerpot » Sat Sep 18, 2010 10:56 am
Thank-you for your replies, quick update on the matter - we have settled the outstanding amout of £88, but it is the legal letter charge of £115 for a single letter without warning (and an incorrect one at that) which I have an issue with. I really cant afford this amount and feel its really unfair because it represents more than 100% of what the outstanding amount was.

The crazy thing is that all homeowners on the estate are part owners of the estate management company which is then managed by a board of directors (3 other residents) and a private estate management company.

I wrote to the directors to see if there was any chance of the legal fee's being waivered, but they say not.

I just wondered if the fact that the letter contains factually incorrect detail - if its enforceable or not and should I challenge it, or should I just accept the matter. They have offered to split the £115 over 3 months, but even this is very painful at the moment with Christmas just around the corner and car mot and service just done also insurance due etc.

Is there anything I can do to avoid paying this £115?
xx
 
 

Shining

User avatar
Posts: 27019
Joined: Thu Sep 20, 2007 8:57 am
Location:

Post by Shining » Sat Sep 18, 2010 11:00 am
I'm sorry this hasn't been resolved yet flowerpot, it does seem a high price to pay!

Not sure about whether you can avoid paying but I'm sure someone will be along soon xx
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

flowerpot

User avatar
Posts: 143
Joined: Fri Feb 22, 2008 11:27 am
Location:

Post by flowerpot » Sat Sep 18, 2010 11:09 am
Thanks lesley, I was awaiting response to my letter to the directors all week long.

£115 for a legal letter seems like extortion to me, even if there was a sum outstanding. All I needed was a simple reminder in the post, but instead they had tagged a brief reminder onto a friendly email about something else in June.

We live in a nice area but its not mega posh or anything - but would it suprise you to learn that part of our estate management fees pay a gardener plus 1 helper, £6100 annually for 3-4 hours work twice a month!!! And of course it is the directors and the private management company who procure his services.

I know I should go to the next meeting and raise the roof, but I feel like posting a newslatter to each resident highlighting a few points!!

Oh and another reason the arrears occured were due to a nearly doubling of the estate management fees since last year. (Gardening fees gone up a lot)

xxx
8 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”