Leaseholders dispute £200,000 maintenance bill

Leaseholders living in a block of flats have reported their management company to the Housing Ombudsman over a dispute over maintenance costs.

People living at Park View Court in Kenton, Newcastle, said RMG wanted to charge them £200,000 for repairs, which they believe should be covered by the monthly fees they already pay .

Resident Neil Scandrett said the charges had come to more than £123 “and they haven’t carried out any repairs”.

RMG disputed Park View Court had fallen into disrepair and said that while service costs had been audited, any underspending had been refunded.

People living in the flats said there were overflowing drains, dead rats, dampness, rot and broken fences.

“The whole place just looks tired,” Mr. Scandrett said.

“Now they are saying, because the place looks tired, they want to charge us £200,000 to carry out the necessary repairs.

“But we have been paying maintenance since 2002. Where has this money gone?”

Residents also said there had been an “absolutely terrible” rat infestation.

Homeowner Julie Moody said her neighbor was “concerned that she had rats in her house”.

“We could not call RMG to take responsibility at that time,” he said.

“This is not what you pay huge management fees for.

“We can’t see that we get anything in return for the money we pay.”

RMG said the pest problems had been resolved following “bin store abuse”.

RMG said the costs of managing the buildings had increased but it was audited by an external company “to make sure they are correct”.

“Customers receive full details and are reimbursed for underspends,” a spokesperson said.

The company said it was “unaware of any existing moisture issues” and that its site inspection showed that routine maintenance was taking place.

The external work now required, which is expected to cost around £200,000, “had been suggested over a number of years but was often delayed due to concerns raised by the Residents Association over the cost”, the spokesperson said.

“The work is urgent, but we will proceed only after full consultation with the clients, who have the authority to nominate contractors and scrutinize quotations,” he said.

Linda Duval, leader of the residents’ group, said their property was their investment.

“At the time I didn’t realize that service charges would cripple me,” he said.

“When I become a state pensioner, which won’t be so long, the service charge will be more than a mortgage.”

Leaseholders’ MP, Labour’s Catherine McKinnell, said the issue was widespread.

“Many residents are having real difficulty with the management companies running their properties,” he said.

“There is no accountability, no transparency about how the money is spent.

“As a government, we really want to prioritize putting power into the hands of residents, who can have a much greater say in how things are managed.”