management fee question

Hi - I'm posting for a friend who has an affordable scheme apartment & just got a bill for management fees of over €2300. Basically it was a late payment "reminder" (5 months late) but the first correspondence ever from that company.

The fee is a total surprise as the impression (friend's memory) was given at purchase that it would approx. €600 per year (this is being checked out though).

This seems like a massive amount for an apartment with it's own access, no designated parking & no extra security. It just covers bins, common grass areas & building insurance I would think.

What are the consequences of late payment does anyone know (legal action I assume) ? Breach of contract ? How can they justify putting up the fees inertly ?

Anyone with any experience in this ?

thanks
M

If your friend is an owner they are entitled to budgets and accounts from the management company. First port of call is to contact the management agents and seek these as well as copies of previous correspondence.

Bill does sound excessive but there was another post on here not too long ago about similar fees in a particular development.

Firstly I dont think your friend is telling you the full story. No managing agent would wait 5 months before sending a letter for late payment.
Management fees of €2300 are high but these may include legal charges for sending your friends case to the solicitors to re-coup the money.

Never ever believe what an expected fee is in the first year as no maintenance contracts are set up because everything is still under warranty so you are just paying for refuse, insurance, sinking fund etc..

The consequences of late payment is extra charges. firstly you will have to pay interest which is not too high but the sting in the tale is the legal fees. These are very high. Id say the €300 of that €2300 is legal fees. these fees will continue to go up until you pay up. Eventually you will end up in court and the Judge will force you to pay them

Hope this helps