service charges apportionmemt

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greeneman

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I stupidly bought a buy to let flat in a block in UK without checking the apportionment of the service charges. Service chrages are apportioned per unit - not by size as I have elsewhere.
Therefore, for my one bed flat I am paying the same cahrge as the 3 bed flat which obvioulsy means the service charge to rent ratio is much higher for me. The service cahrge is being levied in accordance with the lease.
How can I get this changed so that we who own smaller units get a more equitable i.e. lower service charge.
This is a serious problem because if a market ever again emerges the larger units will have a greater net yield. My sercice cahrge is 36% of rent - and that is on full time occupancy.
I cannot believe how stupid I have been on this investment. If there is anyone out there still thinking of getting into buy to let apartments, watch the service charges like a hawk.
 
It seems very unusual that the service charges are not allocated by Square footage; as well as being very unfair.

Can you not raise this at the next meeting of the management committee? Any reasonable person would surely agree that the present situation is unjust.
 
Thanks Kilty

I think that the managemnnt company will advise that they must apportion according to the lease. I think it is going to be a huge task to get the leases changed. I probably need legal advice and I may not be able to afford that. I might try to contact a few other 1 bed unit owners and see if we could share the cost of the original legal opinion.

One thing I have learned: I bought into these new build apartment blocks in UK for buy-to-let near universities. It was meant to be a passive investment. The reality is that while cccupancy is good, yield is terrible, value is down to god knows what, and they take a lot more work and headaches than I realised. My only consolation is that I would be even worse off had I invested in the Irish market.

Thanks
Greeneman
 
Its the management committee you want. Not the management company.

You are a member of the management committee , and with enough votes can change the arrangement.
 
Thanks for your help on this.
Does anyone know anyone who has been through the process, especially in the UK.
Greeneman
 
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