Service charge reset for a converted Victorian block in Romford

Brief

Two years of service charge accounts had not been produced. Leaseholders had stopped paying in protest. The previous agent had left the block and the freeholder approached us to stabilise it.

The situation before we took over

• •Two years of service charge accounts overdue and unproduced
• •Apportionment error charging one flat the wrong percentage for at least 3 years
• •Significant arrears across multiple leaseholders, payment withheld in protest
• •No reserve fund and no written annual budget
• •No portal or shared record of invoices, compliance or accounts

Actions taken

• •Commissioned an independent accountant to produce the missing two years of service charge accounts
• •Reviewed lease apportionment - found one flat had been charged the wrong percentage for at least three years
• •Issued reconciled statements to each leaseholder showing actual position
• •Negotiated structured payment plans with two leaseholders in arrears
• •Established a 10-year reserve fund plan and a written annual budget
• •Set up a leaseholder portal for budget, accounts and compliance visibility

Outcomes

• •Two years of service charge accounts produced and signed off within four months
• •Apportionment error corrected with credit applied to affected leaseholder
• •All arrears recovered within nine months without legal action
• •First-year reserve fund contribution agreed unanimously at the AGM

Before and after