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A second example: another Victorian block, this time on the
South Coast, is also in dire need of major works amounting to around
£150,000. This comes to £5000 per owner. Here also, quotes have been
obtained, but no work can start until all the money is in. Meanwhile,
this block also is deteriorating fast and individual flats are losing
value.
Understandably, those owners who are prepared to pay but
haven’t yet done so are unwilling to subsidize the many non-payers. So
there is no progress. The managing agents are tearing their hair out
wondering what to do next. Every solicitor’s letter sent costs around
£150, depleting funds still further.
What’s to be done? In Spain, where the law is different, names
of non-payers are prominently posted on noticeboards and landings. In
the UK, the Data Protection Act forbids such action, and non-payers
know they can hide behind it.
Non-payment is a problem in every block of flats of any size. And the
risk is that if you name and shame, you may be wrong and become
vulnerable to our libel laws.
The estate manager’s view
-
Non-payers always have plenty of excuses and you may find they have
a trail of unpaid bills everywhere.
-
Posting
up their names could even strengthen their resolve not to pay.
-
When
major works are indicated, agents should write well in advance to
all residents, suggesting they approach their bank or mortgage
lenders for a loan if the price is beyond them.
-
Residents should be made aware that service charges constitute the
only source of revenue for upkeep.
-
When
all this fails, send a high-handed solicitor’s letter, suggesting
that if they can’t afford to live in the block they must sell their
flat and move on.
-
If a
resident genuinely can’t afford to pay for works, then they clearly
cannot afford to go on living there, and this must be pointed out.
-
If
non-payment persists, the managing agents can press for forfeiture
of the lease. Another possible avenue is the Leasehold Valuation
Tribunal. Both procedures, though, are slow, costly, with outcomes
not guaranteed and in the meantime, the building deteriorates still
further.
Often the worst offenders are absentee landlords who have
bought some of the flats in the block as an investment. Because they
are not living there themselves, they rarely want to pay a thing.
Jenny says: “We do know that at least one non-payer is an
investment landlord, because he has written to us, saying he needs an
assurance that the mansard roof will be repaired before he pays up.”
All buildings will need expensive maintenance sooner or later.
The law should be simple and swift: assuming all correct procedures
have been followed, and quotes accepted, those who maintain they
cannot pay must be made to sell instantly, no messing about.
Now that more people than ever are living in blocks of flats,
we cannot continue to hide behind antiquated laws protecting privacy,
or cumbersome, expensive court procedures, both of which favour the
non-payer.
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