UK Leasehold System's Service Charge Law is Outdated and Foul.
The current system governing service charges for UK leaseholders is a gross injustice that leaves them with little to no control over their finances. Unless they choose to take on the responsibility of managing their own buildings, leaseholders are forced to rely on often uncooperative management agents when it comes to receiving information about the accounts. And even then, these agents frequently fail to supply detailed and accurate financial records, leaving leaseholders vulnerable to disputes.
Under current law, leaseholders have no say in what service charges are imposed or how much they must pay. The law assumes that as long as the work is necessary and reasonable in cost, it justifies payment - a dubious premise if ever there was one. What's more, the reason behind the charge doesn't even matter; the fact remains that leaseholders must foot the bill for these expenses.
A recent government decision to allow freeholders to build up to two extra storeys without planning permission has led to numerous cases of leasehold problems, with existing tenants in the original buildings facing huge financial burdens due to remediation costs. These developments are entirely driven by the landlord's interests and offer no benefits to the original leaseholders.
It's unacceptable that under current law, leaseholders must bear these expenses, often running into tens of thousands of pounds each. Something needs to be done urgently in Parliament to address this outrageous situation and give leaseholders a fairer deal.
The current system governing service charges for UK leaseholders is a gross injustice that leaves them with little to no control over their finances. Unless they choose to take on the responsibility of managing their own buildings, leaseholders are forced to rely on often uncooperative management agents when it comes to receiving information about the accounts. And even then, these agents frequently fail to supply detailed and accurate financial records, leaving leaseholders vulnerable to disputes.
Under current law, leaseholders have no say in what service charges are imposed or how much they must pay. The law assumes that as long as the work is necessary and reasonable in cost, it justifies payment - a dubious premise if ever there was one. What's more, the reason behind the charge doesn't even matter; the fact remains that leaseholders must foot the bill for these expenses.
A recent government decision to allow freeholders to build up to two extra storeys without planning permission has led to numerous cases of leasehold problems, with existing tenants in the original buildings facing huge financial burdens due to remediation costs. These developments are entirely driven by the landlord's interests and offer no benefits to the original leaseholders.
It's unacceptable that under current law, leaseholders must bear these expenses, often running into tens of thousands of pounds each. Something needs to be done urgently in Parliament to address this outrageous situation and give leaseholders a fairer deal.