- Posts: 28
- Joined: Tue Jul 29, 2014 1:21 pm
I think the issue about service charges and maintenance is actually going to become increasingly important as more people live in flats and large scale developments, especially in city centres or big regeneration areas.
On the one hand, I think that service charges are a source of potentially excess profits for the recipient of those charages (and ultimately developers and landowners who can sell the rights to these charges for a higher price). You see some of the service charges in London and they can be eyewatering. Even accounting for the fact you need to build up surpluses to pay for periodic maintenance and eventually big projects (like re-roofing), I just can't see how some places justify 4k+ a year on hundreds of units. You add up the annual running costs of say 4 concieges (to provide around the clock cover) and the costs of other staff - cleaners, and gardeners, and associated running costs. And you add up to just a small fraction.
One way to solve this is for the leaseholders to exercise their right to manage. And to have more developments where leaseholders jointly hold freehold. But then the risk is differnet. I think people are short-termist and just don't appreciate the need to build up large surpluses to then pay for large-scale periodic works. Naturally they want to keep the service charges as low as possible. So you get postponement of works, and then potentially big bills dropping on doormats at the time of a big project.
Don't know what the solution to that conundrum of potential overcharging versus short-termism. Better information for leaseholders?
Of those places I still think Altolusso looks OK. The Aspect was looking pugly though (although has it recently been repainted?). Wood panels are always a terrible idea in my view.
