Flat Management Fees

Yes. And AFAIR not much point in legal action as you are basically sueing yourselves. The same if you want to sue the freeholder. There is a tribunal service (even that does not always work, there are horror stories of the freeholder appointing top flight barrister, the leaseholders win but still end up paying the freeholders legal bill through the service charges..!).

It is common that services charges are pitched lower than they should be. But higher charges are not necessarily bad: it depends what you get for it. If the common parts are improved, that is good investment. Also any 'excess' goes into a sink fund for future capital repairs. In one case the Management Co 'forgot' to pay an electricity bill and leaseholders got a big shock... but nothing they can do about it. New flats especially pitch low charges as it probably helps to sell them.

The best advice is to take a more active role in the management Co (pester them), and if necessary try to change the management Co. It is possible for leaseholders to do it on their own (but it is work, hassle). Many owners take absolutely no interest (e.g. absent landlords) and things can easily go down hill... tenants often don't give a toss either (some treat the common parts like a large dustbin).

You really don't have any option but to pay, but I'm sure that your solicitor told you this when the flat was purchased. However the critical question is who owns the freehold because they will appoint the managing agents.

In my case the owners of the flats in my block own equal shares of the company that owns the freehold and they have appointed a management company to look after the day to day running, i.e. paying the gardener, cleaner and the communal electricity bills and collecting the service charges. The management company advise on repairs, budgets, etc. but at the end of the day the company directors appointed by the shareholders make the decisions. However experience shows that only 20% of owners are actually interested enough to attend the AGM and even less are willing to be appointed as directors.

You will be surprised how much can be spent - internal and external decoration, management company fees, gardening, cleaning, fences, electricity and most important property insurance!

If you are really interested see how your block is managed - if it's like ours then I'm sure you will be welcomed on board!

Peter

PS if you don't pay then the freeholder will contact debt collectors and you WILL end up paying their fees in addition to the service charges. The debt collectors will approach the mortgage company (if there is a mortgage) and declare that you are in breach of your lease - often the mortgage company will pay the outstanding charge and add it to the mortgage (so now you are paying interest as well). If there is no mortgage they will take you to court and get an order on the property that will prevent you selling until the debt is cleared.

The purchaser's solicitor in any case would presumably check with the manager to ensure all payments are up to date before settling.

Such debts would most probably 'run' with the lease (dependent on the terms of the lease, but if the lease is properly drafted it would allow for this). In such cases it would appear to me that these debts have even higher priority than a first mortgage.