Third Floor, 18–20 The Ropewalk, Nottingham, NG1 5DT

02 — Why a service charge refund of over £1 million was due

Background

One of our managing agent clients introduced us to a resident director of an extremely vast development with multiple blocks.

The development is fairly newly built and there has been problems with defective roof works. This issue had been more or less resolved with the developer. However, the residents were due a large refund – approx. £1million in their service charge account for payments that had been made towards correcting the works.

The leasehold owners and directors of the management company had formed a well organised residents group to liaise directly with the current managing agent about this issue and general ongoing matters. However, there had been some breakdown in communication and some trust had been lost in the relationship.

The development is fairly newly built and there has been problems with defective roof works.
Project info
Client
Managing Agent
Services
Ongoing Advice
Outcome
Negotiating the return of service charge funds
Action

We were engaged directly by the residents group to act for them independently and to provide them with ongoing advice about various aspects of block management legislation and their leases. Also as a double check of advice they were being given by their managing agent. We were also asked to act solely for them in negotiating the return of their service charge funds.

Conclusion

We regularly attend their residents meetings in person so as to be on hand for them, to give some legal input and to provide guidance where required.