Question 1

Updating service charge demands tied to old Rateable Values

Accepted Answer

We have 3 rates of service charge based on the old Rateable Values, which is obsolete, as you will appreciate. We are thinking of bringing into line so that everyone pays the same. We would raise this at our AGM in October & wonder if you can see any issues please? The FPRA replies: I think a special resolution at the AGM will be required, as otherwise the leases may need to be changed and I can envisage those flats who will be asked to pay a higher proportion may well object if it is made uniform without their knowledge or prior consent. I note also that the flat lease provided has only 60 years remaining, thus if none of the flats have been granted lease extensions it may be something that the management company could ask the freeholder to negotiate when doing so, in the future. Alternatively the members/shareholders of the management company would need covenant to pay their due equal proportion when there is a conveyance. It is not a simple matter to alter proportions without all agreeing 100%. This maybe an issue best also asked to one of our solicitors on the committee too for an opinion, as I believe there have been in the past LVT cases on the this subject or similar issues.

Question 2

Updating service charge demands tied to old Rateable Values

Accepted Answer

We have 3 rates of service charge based on the old Rateable Values, which is obsolete, as you will appreciate. We are thinking of bringing into line so that everyone pays the same. We would raise this at our AGM in October & wonder if you can see any issues please? The FPRA replies: I think a special resolution at the AGM will be required, as otherwise the leases may need to be changed and I can envisage those flats who will be asked to pay a higher proportion may well object if it is made uniform without their knowledge or prior consent. I note also that the flat lease provided has only 60 years remaining, thus if none of the flats have been granted lease extensions it may be something that the management company could ask the freeholder to negotiate when doing so, in the future. Alternatively the members/shareholders of the management company would need covenant to pay their due equal proportion when there is a conveyance. It is not a simple matter to alter proportions without all agreeing 100%. This maybe an issue best also asked to one of our solicitors on the committee too for an opinion, as I believe there have been in the past LVT cases on the this subject or similar issues.

Updating service charge demands tied to old Rateable Values

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