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Flat’s £23,000 service charge bill ‘beggars belief’, says owner


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https://amp.theguardian.com/money/2020/nov/21/flat-service-charge-bill-owner-london-fees

A resident at a 24-flat development in central London says he had the shock of his life when he opened his latest service charge bill and found he was being asked to pay £23,309 for the year – 12 times the average for the capital.

“Many of the charges listed beggar belief,” says Waiel Yahia, who bought his three-bedroom flat in early 2017 when his bill that year was £9,420. Another resident with a smaller flat, Chandini Lachmandas, is being charged £16,943 this year, up from £6,965 three years ago.

Residents are now paying more than the millionaires living in one of Mayfair’s most exclusive developments, which boasts luxury perks such as a swimming pool, cinema and wine room.

This is a nice development but we don’t have any of those things,” Lachmandas says.

The development, One Seymour Street, is certainly a cut above the average block. Located close to Oxford Street, it was only completed in 2018, although its 24 apartments were snapped up off plan the previous year at prices starting just below £1m for a one-bed flat, according to press coverage at the time.

Lachmandas paid £1.9m for her two-bed flat in 2017 and describes the £19.39 per sq ft service charge as “scandalous”. The 38-year-old claims some flat owners had tried to sell up, adding: “Our property values have taken a huge tumble – no one wants to take on these nonsensical, inexplicable fees.”

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https://amp.theguardian.com/money/2020/nov/21/flat-service-charge-bill-owner-london-fees

A resident at a 24-flat development in central London says he had the shock of his life when he opened his latest service charge bill and found he was being asked to pay £23,309 for the year – 12 times the average for the capital.

“Many of the charges listed beggar belief,” says Waiel Yahia, who bought his three-bedroom flat in early 2017 when his bill that year was £9,420. Another resident with a smaller flat, Chandini Lachmandas, is being charged £16,943 this year, up from £6,965 three years ago.

Residents are now paying more than the millionaires living in one of Mayfair’s most exclusive developments, which boasts luxury perks such as a swimming pool, cinema and wine room.

This is a nice development but we don’t have any of those things,” Lachmandas says.

The development, One Seymour Street, is certainly a cut above the average block. Located close to Oxford Street, it was only completed in 2018, although its 24 apartments were snapped up off plan the previous year at prices starting just below £1m for a one-bed flat, according to press coverage at the time.

Lachmandas paid £1.9m for her two-bed flat in 2017 and describes the £19.39 per sq ft service charge as “scandalous”. The 38-year-old claims some flat owners had tried to sell up, adding: “Our property values have taken a huge tumble – no one wants to take on these nonsensical, inexplicable fees.”

 

If i cant have rent free for life from the Queen, i would never buy a property. leasehold is for mugs. 

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If i cant have rent free for life from the Queen, i would never buy a property. leasehold is for mugs. 

These are not normal people, they are using London property as a storage of wealth.

Buying in 2017 after Brexit thinking they are intelligent and playing the long game, the properties at the moment are unsaleable.

 

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https://amp.theguardian.com/money/2020/nov/21/flat-service-charge-bill-owner-london-fees

A resident at a 24-flat development in central London says he had the shock of his life when he opened his latest service charge bill and found he was being asked to pay £23,309 for the year – 12 times the average for the capital.

“Many of the charges listed beggar belief,” says Waiel Yahia, who bought his three-bedroom flat in early 2017 when his bill that year was £9,420. Another resident with a smaller flat, Chandini Lachmandas, is being charged £16,943 this year, up from £6,965 three years ago.

Residents are now paying more than the millionaires living in one of Mayfair’s most exclusive developments, which boasts luxury perks such as a swimming pool, cinema and wine room.

This is a nice development but we don’t have any of those things,” Lachmandas says.

The development, One Seymour Street, is certainly a cut above the average block. Located close to Oxford Street, it was only completed in 2018, although its 24 apartments were snapped up off plan the previous year at prices starting just below £1m for a one-bed flat, according to press coverage at the time.

Lachmandas paid £1.9m for her two-bed flat in 2017 and describes the £19.39 per sq ft service charge as “scandalous”. The 38-year-old claims some flat owners had tried to sell up, adding: “Our property values have taken a huge tumble – no one wants to take on these nonsensical, inexplicable fees.”

 

Don't buy a flat, don't buy leasehold. Simple. Read the f'ing contract. 

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This is simply the developers way of telling them to hurry up and organise themselves to buy the freehold, or run their own management company. 

It may be a way of increasing the freehold value at the same time. 

So now the millionaire tenants are going to have to challenge the charges in court, and buy the freehold. 

Developer probably figures freehold values are the highest they will get and it's time to sell up asap. 

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I guess Waiel and Chandini bought their flats in abject protest, through gritted teeth, at the financialisation of real estate in the UK which has priced out generations of the working classes from having decent accommodation. In fact they must be aching inside for their cockney ancestors to see such a fate for their children's children.

Meanwhile, this is being reported on in India -

https://www.pehalnews.in/flats-23000-service-charge-bill-beggars-belief-says-owner/293750/

 

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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