Unprecedented service charges blocking exchange

Dear Landlords

I am in the process of buying a property.

The current sellers assured me that the services charges were no more that £1.5k annually.

We are due to exchange but my solicitor has come back with an £8k annual service charge given the info from the new management co!!

The sellers management company changed this year and a new one took over in q4 2020 and applied what they say is an annual charge £2k to get some funds in to do the work. However this is labelled as a quarterly £2k payment in their management pack. They will not provide an indication of what next years charge will be or even a range of what I can expect.

In order for us to proceed we need a firm indication in writing £8k is simply daylight robbery for a 2 bed flat - what can we do as the management company is refusing to cooperate.

Please help…

Do not buy it. Pull out if you have not exchanged. these people can be rip off merchants. . Speak to others in the block, what do they know?


Am I able to do that without having moved in. I could try to get contact details from the seller

you mean able to speak to others in the block ? yes. It is in your interest to do so I would go along to the place Ring all the bells and speak to people . It may be the previous management did not carry out much maintenance and the new management have to catch up, hence higher prices . The seller may have a vested interest in not telling you too much.

Yes very true but what a waste of everyone’s time not to be transparent.

Thanks for the advice Colin - I will look into it tomorrow

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Your solicitor needs to ask their solicitor to ask them to get a written statement, (which they might have to pay for) of current and planned annual service charges.