Management company demanding previous owner’s service charge?

Management company demanding previous owner’s service charge?

10:16 AM, 8th January 2024, About 11 months ago 14

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Hello all, happy new year and I hope you can advise how we should proceed.

My son bought his flat and moved in May 2023. As part of the conveyancing process, he paid an apportioned service charge for the period to 31 October 2023. In November, he received his first invoice/service charge demand from the management company, which was split into different periods.

It included the half yearly period to 31 October 23 (which he has already paid as mentioned above) plus another for service charge adjustment for the period Nov 21 to Oct 22. In total for the two periods nearly £1,400.

My son notified his solicitor who contacted the seller’s solicitor to follow up and to confirm the position etc. My son also notified the management company, who replied that his solicitor would need to sort it out, but the outstanding balance remained on his account. My son followed up with his solicitor at the end of December and was informed that he has not heard from the seller’s solicitor, and he would send a reminder.

The Management company has now sent a demand letter for the outstanding balance which is clearly not my son’s debt. This needs to be paid withing 7 days or an admin change will start to be applied.

During the sale process, the previous owner gave us his contact number. I called him yesterday to explain the situation and he said he has not had any communication from his solicitor regarding this and he has paid his service change and was up to date. He said he would look into it and based on his tone; I expect him to do nothing and avoid settling his debt.

The flat was let by him, and I am almost certain that he has not paid the service change but obviously can not proved this.

My question is where does my son stand, and what should he do?

This must be a common situation with the sale of flats with service changes. He will obviously notify his solicitor, but I don’t think the solicitors are bothered to sort out historic issues give they have been paid already.

Thank you in advance,

Martin


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Kizzie

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17:24 PM, 18th March 2024, About 8 months ago

Leaseholders have the legal right to inspect the accounts an implied legal right in your lease in section 21(1)
and section 22 of Landlord &Tenant Act.
Templates of the Notice to be served on the Man Co acting on behalf of the landlord are on internet.
Failure to comply by man co is breach of LTA and an offence subject to financial penalty and inability by
Man co as LL to pursue service charge arrears

Kizzie

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17:47 PM, 18th March 2024, About 8 months ago

Replying to the original post service charge contributions are due from the Leaseholder named as the registered proprietor of the lease at the time sc was due.
These are sc arrears only due under provisions of your
son’s lease contract.
These are not ‘debts’ and the lease is not a commercial contract. The man co is trying it on because it failed or did not succeed legally to pursue the previous leaseholder.
Your son should apply to the first Tier Property Tribunal for a determination that the Man co is not performing its obligations under the lease. Changing the identity of service charge due
under a lease to that of debt due to a creditor is a massive red flag 🚩 suggesting false accounting

Emily

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18:48 PM, 18th April 2024, About 7 months ago

I have similar issue being asked to pay adjustment for service charges for year prior to my purchase. Can they force me to pay? No retention fund applied to vendor as charge not published until after sale and last 3 years were overpayments

Kizzie

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9:35 AM, 19th April 2024, About 7 months ago

Did your conveyancer obtain from seller’s conveyancers the LPE 1 and LPE 2 forms? If not you have claim for negligence against your conveyancer.
If they did and issue of outstanding service charge withheld then you can sue the seller.
Your ownership is from date of registration at HMLR of assignment into your name of the lease.
The purchase should not have proceeded without written confirmation that sc and gr were paid up to date. Your conveyancer failed to undertake Searches a duty which you paid for.
‘They’? MA or Management Co.?

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