'Our service charge has gone up by 400% – to £4k'

Leaseholders said they are shocked after receiving service charges for their properties that have risen by almost 400%.

Residents of Cavalier Way in Wincanton were informed in March that some of them would face charges exceeding £4,000, with a short payment deadline of just 19 days, causing concern for leaseholders.

Residential Management Group (RMG) took over property management on the street in May 2024, after the previous management company, Plymouth Block Management, was dismissed by the freeholder, Proxima.

One resident said the fees were "ridiculously high", but RMG said essential maintenance needing funding from service charges.

Chris Watt, a leaseholder who owns a two bedroom flat on Cavalier Way, said the previous annual fee for his flat was £870, but the charges have now soared.

Mr Watt said: "We got a whiff of something being wrong in September 2024 when RMG had a video conference with us.

"They mentioned things like only being able to get contractors from Dorchester due to a lack of approved contractors in Somerset.

"They said replacing the bottom carpets and painting the hallway would cost £10,000.

"The charges proposed are still ridiculously high. They're asking upstairs flats for £4,209, and there's every indication that this could go up year on year."

Mr Watt said residents were initially given 19 days to pay the bill but this has now been delayed by a month thanks to intervention from his local MP.

"It is just silly, because there is no way we can pay it on such short notice," he added.

"There is lots of campaigning going on. Sarah Dyke, our local MP, got involved and spoke to RMG and they have delayed the payment date by 28 days so we have a little bit of breathing space but not much."

Sonya Wilson-Hebben, who also owns a two bedroom flat on the street, was "horrified" when her annual charge jumped from £800 to £3,800.

"We were given no information about the extra costs, which were listed under very vague general maintenance categories," Ms Wilson-Hebben said.

"RMG has labelled the charges as a 'budget' rather than a service charge, which means we can't request transparency through Section 20 of the Housing Act which would require a consultation process.

"We are frightened this will continue, and the costs will keep rising without proper consultation."

Many leaseholders are now exploring their options, including taking control of property management, but this comes with its challenges.

Watts said they have only recently found solicitors to assist them in their fight to get control, and the process is costly.

A spokesperson for RMG acknowledged the concerns of residents: "We understand that recent service charge increases are concerning for some of our customers at Cavalier Way.

"We are listening and will do everything we can to support them and give them all the information they need to understand the new charges."

The spokesperson explained that RMG had taken over due to long-standing health and safety issues, with essential maintenance needing funding from service charges as no reserve funds were transferred from the previous management company.

They assured residents that any unspent funds would be credited back at the end of the financial year.

"We are prioritising health and safety-related work and will be consulting customers on other issues soon," the spokesperson added.

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