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Leasehold, flat new roof £32,000, have to pay in advance

(84 Posts)
Allsorts Thu 23-Jan-25 08:08:25

That doesnt seem right to me. Shouldn't a Management fund be there for just such instances, what happens if a few people haven't the money?. It's put me right off getting a flat especially a top floor one.

Aveline Thu 23-Jan-25 08:01:53

I'm sure they were!

karmalady Thu 23-Jan-25 07:42:58

Quotes are absolutely essential and should have been forwarded to all leaseholders. Management duty. (as ex chairperson of a management company)

Aveline Thu 23-Jan-25 07:34:07

We do have such a fund here but it gets depleted from time to time and needs topped up. Defaulters/non payers is a potential problem. However, the work must be done and faffing about with lots of residents wanting to see and comment on quotes etc is a recipe for constant delays meanwhile the fabric of the building deteriorated. Leave the management to get on with the job they were appointed to do.

karmalady Thu 23-Jan-25 06:56:39

The management company has been negligent in not having a sinking fund. Sinking funds can be emptied by the management company

I would most definitely employ a solicitor, at the very least to read through the 3 quotes that you should have been shown

Ask also to see the accounts for the sinking fund

It is understandable that the money has to be `up-front`but worrying in case other leasehoders do default

Aveline Thu 23-Jan-25 06:13:43

In our block we pay upfront for the the same reasons your management fund gives you. My DH is chairman of the residents committee in charge of organising work currently needing done. It's not a scam. They just have to have the money to hand to pay the contractors. We really don't want to delay the work if the contractors walk off the site if they're concerned at non payment.

loopyloo Thu 23-Jan-25 06:01:44

Also if you have a solicitor on your side if shows you are not an easy money source.

loopyloo Thu 23-Jan-25 06:00:23

What are the other leaseholders saying about it? Have you talked to them?
Could you get together and have a surveyor give an estimate for the work to challenge their costing?
It sounds dodgy to me.

mokryna Thu 23-Jan-25 02:16:29

I know the pitfalls of UK leasehold, even more so now. The building where the small flat I own has been deemed to need a new roof.

The £32,000 has to be paid into the management’s ’trust fund’ completely in advance. I have argued that I should pay as the work is carried out but to no avail, the money has to paid up front. The management told me they couldn’t do it any other way incase other leaseholders default on the sum before the job was finished.
They say they will send all the legal documents in the near future, to confirm all is correct.

I have contacted my bank as to know how to protect my money. They don’t agree to paying before the work had been finished but I have no choice, so they could only suggest to pay by my bank card, in small amounts, eg 10,000 x3 and to check the company is legal.

The management company is listed on the UK.gov site.

I don’t see how a solicitor could help as the work has to be done, unless you could advise with experience in this regard.

Please, could anyone give me some advice on how to protect my money. Thank you.