Contesting estate service fee's
Discussion
I live on a new build which has a yearly estate service charge managed by Trinity to cover the usual issues. No issues with the concept, we're a smaller development of 60 houses.
However this year some increases just seem astronomical. An example:
Landscape Maintenance - Increased by 71% over the previous year, now over £12k. This is undertaken by a small local landscaping firm
Lake/Pond/Water Maintenance - Increased by 180% to over £6k
Drainage Maintenance - Increased by 169% to 2.5k
There are other small increases too.
I've sent an email off saying I'm withhold any payment until they answer the following:
- What has changed in the services to warrant the increase
- What steps they (Trinity) have taken to reduce costs
- What tendering process has been completed
I know I'm legally obliged to pay the service charge but am I within my rights to question this? Is there anything else I can do legally to challenge the increases?
However this year some increases just seem astronomical. An example:
Landscape Maintenance - Increased by 71% over the previous year, now over £12k. This is undertaken by a small local landscaping firm
Lake/Pond/Water Maintenance - Increased by 180% to over £6k
Drainage Maintenance - Increased by 169% to 2.5k
There are other small increases too.
I've sent an email off saying I'm withhold any payment until they answer the following:
- What has changed in the services to warrant the increase
- What steps they (Trinity) have taken to reduce costs
- What tendering process has been completed
I know I'm legally obliged to pay the service charge but am I within my rights to question this? Is there anything else I can do legally to challenge the increases?
No rights whatsoever. The contract is not with you - the service contract is with the landowner, so they don't care, as you mugs are footing the bill. Sorry 
https://hoa.org.uk/2016/11/problems-facing-freehol...
https://hoa.org.uk/2016/11/problems-facing-freehol...
Fair one. As far as I know, you have no rights whatsoever to object to the charges, have a quiet revolution and form your own management company to do the work.
I would suggest that you start talking to the developer, as they have the contractual relationship with Trinity. You MAY be able to persuade them that you can do a much better job, fulfil their obligations to the various parties, but its persuasion - you have no rights here
Others, specifically people like Equus may be able to advise better . Good luck
What's the total cost per house. And is this the second full year of the estate?
Seems to me the first year would have been underbid to win business and the true cost now being reflected, plus a covid tax, too.
Doubt there will be a transparent tendering process given some of the values. There is probably a requirement to buy local, which may make it less competitive. You should be able to see the documentation.
You won't be able to take over the management of the site without buying them out, I understand.
Seems to me the first year would have been underbid to win business and the true cost now being reflected, plus a covid tax, too.
Doubt there will be a transparent tendering process given some of the values. There is probably a requirement to buy local, which may make it less competitive. You should be able to see the documentation.
You won't be able to take over the management of the site without buying them out, I understand.
HantsRat said:
In that case then, I think we can take on management ourselves. Does anyone know the steps we need to take to do this?
Check with the management company, they may have a transfer scheme. Our estate is managed by Greenbelt, this is from their consumer choice policy:Edited by HantsRat on Friday 15th January 09:46
Homeowners who wish to undertake the ownership and responsibilities for the open space land management themselves (in place of Greenbelt) may do so provided they clear all outstanding debts to Greenbelt.
Once this is done, homeowners need to obtain / establish the following:
• Evidence that two thirds of the existing homeowners agree to the transfer arrangements;
• A properly constituted body to own such land; e. g. limited company with the owners for the time being of each property having 1 share in the company set up;
• Approval of the local planning authority to the new owner where planning obligations attaching to the development require this;
In addition, on transfer of the open spaces, the new land owner will be required to:
• accept that the title transfer is made subject to (a) the existing title obligations and planning designations as open space; and (b) any particular provisions required having regard to the particular site in question;
• accept a transfer of all of the open spaces and features owned/maintained by Greenbelt on the development together with the associated liabilities;
• obtain any necessary consents from any relevant statutory undertakers and/or relevant third parties;
• meet Greenbelt’s reasonable fees in connection with the land transfer.
01WE01 said:
What's the total cost per house. And is this the second full year of the estate?
Seems to me the first year would have been underbid to win business and the true cost now being reflected, plus a covid tax, too.
Doubt there will be a transparent tendering process given some of the values. There is probably a requirement to buy local, which may make it less competitive. You should be able to see the documentation.
You won't be able to take over the management of the site without buying them out, I understand.
Yearly bill is £559.67 which is a 1.66% share.Seems to me the first year would have been underbid to win business and the true cost now being reflected, plus a covid tax, too.
Doubt there will be a transparent tendering process given some of the values. There is probably a requirement to buy local, which may make it less competitive. You should be able to see the documentation.
You won't be able to take over the management of the site without buying them out, I understand.
Here is a summary of the changes... https://imgur.com/RRun6QX
Edited by HantsRat on Friday 15th January 10:50
You are perfectly within your rights question the managing agent and request copies of invoices for services. Are these increases actual costs incurred, or are they in the service charge estimate for the next period? There's not a lot you can do to challenge an estimate, but if actual costs are lower you should get the excess back.
Are the properties freehold or leasehold? If they're freehold there should be an Estate Management Company established to own the common areas of the estate, and once the development is complete residents should be appointed as Directors to run the EMC. They can then appoint a new managing agent, or at least exert some leverage over the existing one to keep costs down, subject to a vote from the members. You can self manage but for 60 units you want an agent really - even if it's just to keep everything legal, collect the money and provide a point of contact for the residents to report any problems. You can determine the scope of routine maintenance - for example if the residents want to cut the grass themselves then the landscaping contract can be scaled back to save a few quid. We have a small childrens play area on our estate and get charged £50 a week for a safety inspection - there's no reason the residents couldn't do that themselves if it's properly recorded and evidenced, and just have a professional inspection once a year to keep the insurers happy.
If it's leasehold, it's a bit more difficult as you'll need to invoke the right to manage with the freeholder which means you need to get a lot of the residents to actively agree. With an EMC you just need a vote at a meeting - which most residents won't turn up to.
Are the properties freehold or leasehold? If they're freehold there should be an Estate Management Company established to own the common areas of the estate, and once the development is complete residents should be appointed as Directors to run the EMC. They can then appoint a new managing agent, or at least exert some leverage over the existing one to keep costs down, subject to a vote from the members. You can self manage but for 60 units you want an agent really - even if it's just to keep everything legal, collect the money and provide a point of contact for the residents to report any problems. You can determine the scope of routine maintenance - for example if the residents want to cut the grass themselves then the landscaping contract can be scaled back to save a few quid. We have a small childrens play area on our estate and get charged £50 a week for a safety inspection - there's no reason the residents couldn't do that themselves if it's properly recorded and evidenced, and just have a professional inspection once a year to keep the insurers happy.
If it's leasehold, it's a bit more difficult as you'll need to invoke the right to manage with the freeholder which means you need to get a lot of the residents to actively agree. With an EMC you just need a vote at a meeting - which most residents won't turn up to.
Funnily enough we're going through the same here with Trinity (we're Hants location too). 32 properties change of landscaping firm has doubled the costs for that part of the maintenence charge! £246 to £342 p.a. I should imagine a few are regretting not starting our own management company when someone proposed it previously now lol.
Richard-390a0 said:
Funnily enough we're going through the same here with Trinity (we're Hants location too). 32 properties change of landscaping firm has doubled the costs for that part of the maintenence charge! £246 to £342 p.a. I should imagine a few are regretting not starting our own management company when someone proposed it previously now lol.
Seems to be a recurring trend with Trinity. I'd imagine most on our estate would love to create out own, just no one knows how to start this process and get the ball rolling.Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff