Leaseholders have little or no control over service charges, and the system needs urgent attention, according to Chris Wallis in a letter to the editor.
Wallis argues that unless they manage their buildings themselves, leaseholders have minimal influence over what service charges are issued. While the law entitles them to see accounts, managing agents frequently fail to supply them or provide them in a form that does not add up. Legally, leaseholders must pay these charges and then challenge them, usually at the first-tier tribunal, where the precedent is that as long as the charges are necessary and reasonable, they must be paid, regardless of why the charge arose.
In 2020, the government allowed freeholders to build up to two additional storeys without planning permission. There are increasing reports of leaseholders in original buildings experiencing huge problems from failures of these developments. The work is undertaken entirely for the landlord's gain with no benefit to existing leaseholders, yet under current law, leaseholders are expected to pay for remediation, which can run into tens of thousands of pounds each.
Wallis concludes that this cannot be right and needs urgent attention in parliament.
