QUESTION
What does a flat owner/ leaseholder do when the Management Company refuse to share the Annual Company Accounts with them? (Signed by directors in February 2018 - Y/end 31/08/17)
ANSWER
Section 21 of the Landlord and Tenant Act 1985 requires landlords to provide leaseholders with a summary of the service charge costs incurred. Following that you have the right to see the accounts and supporting documentation.
If you have not already done so, you should make a written request for the service charge accounts, and any supporting information, for the year ending 31 August 2018. You have the right to make such a request under Section 22 of the Landlord and Tenant Act 1985 within 6 months of obtaining the summary.
Your Management Company has one month to facilitate the inspection of the accounts and the accounts should be available for 2 months thereafter. You can also take copies however the Management Company may charge you a small sum for this.
If the Management Company do not respond or provide the above information, you may wish to follow a complaints procedure with the Management Company. This may make your Management Company take your request more seriously and provide the requested documentation.
If you are still met with silence, then the final straw would be to pursue the matter in the Magistrates Court. The Management Company’s unreasonable non-compliance with your request could have legal consequences under Section 25 of the above Act and a failure to comply can result in your Management Company/Landlord being fined.
Laura Severn, Director at LMP Law
