I have been told that the management fee for the first six months of next year on my apartment in Cardiff Bay will increase by around £300. This is on top of the demand I received and paid in August for an overspend payment of £311. Is there no limit to the amount I can be charged by these people?
The additional demand you refer to is presumably the excess Service Charge demand for the previous financial year during which there was an overspend. This either suggests that the budgeted Service Charge levels are inadequate, or there is considerable additional expense being incurred for whatever reason.
You need to request detailed information on the reasons for such excessive charges and an explanation as to why the level of Service Charge budget set is proving inadequate.
It is increasingly a problem with regard to the payment of Service Charges that large management companies are reluctant to provide intimate details in support of their accounts and this has led to a number of tenants finding themselves in a serious conflict situation with their managing agents often resulting in long drawn-out court cases and, in some instances, the managing agents bringing bankruptcy proceedings against tenants who are refusing to pay.
Sadly, it appears that managing agents are reluctant to provide the necessary details requested or indeed answer further queries with regard to the manner in which certain expenditure has been incurred mainly because they are dealing with a number of large developments throughout the country.
This, however, is scant consolation to the individual tenant who is simply required to pay up or face forfeiture or bankruptcy proceedings for refusing to pay. You are strongly advised to seek the advice of your property specialist who will advise you on how reasonable the demand for further payment appears to be, and the correct procedure for disputing the same.