Leaseholders in Kirkdale Corner, Westwood Hill, Sydenham are feeling the financial strain of a significant increase in service charges since 2016. The seven leaseholders have seen their charges jump from £1,600 to £3,500, despite the poor condition of their properties, which are plagued with leaks, damp, and broken windows.
Freshwater, the property management company that owns the block of flats, claims that the service charges are carefully reviewed to ensure they are reasonable and provide value for money. However, residents like Matthew Gisborne are struggling to make ends meet. Gisborne expresses the stress and anxiety he has faced due to the financial burden imposed by the service charges.
Leasehold property owners pay service charges to cover communal services such as cleaning, repairs, and insurance. However, there is often a lack of transparency in how these costs are calculated. Gisborne points out that leaseholders are being charged for services they do not receive, such as garden maintenance for properties without gardens and outdated CCTV cameras.
In addition to the service charges, leaseholders are also facing a £4,000 reserve fund charge each year for major works carried out by Freshwater in 2020. Despite efforts by residents to challenge Freshwater’s decisions regarding major works, they have faced setbacks in tribunals.
Many leaseholders, like Danila Bodei, are feeling the financial strain of these charges. Bodei, who has lived in Kirkdale Corner for 14 years, expresses the worry and frustration of constantly having to deal with maintenance issues and high service charges. Some residents have tried renting out rooms to offset the costs but end up losing money due to the service charges.
Attempts to sell their properties have been met with challenges, as estate agents warn potential buyers about the high annual charges associated with the properties. Freshwater maintains that the charges are justified and that they have worked with residents to establish payment plans for those facing financial difficulties.
The situation at Kirkdale Corner highlights the challenges faced by leaseholders when it comes to escalating service charges and lack of transparency in how these charges are determined. Residents are left questioning the value they receive for the money they pay and are struggling to make ends meet amidst the financial burden imposed by the property management company.
