02 — Why a service charge refund of over £1 million was due

One of our managing agent clients introduced us to a resident director of an extremely vast development with multiple blocks.

The development is fairly newly built and there has been problems with defective roof works. This issue had been more or less resolved with the developer. However, the residents were due a large refund – approx. £1million in their service charge account for payments that had been made towards correcting the works.

The leasehold owners and directors of the management company had formed a well organised residents group to liaise directly with the current managing agent about this issue and general ongoing matters. However, there had been some breakdown in communication and some trust had been lost in the relationship.