Service Charge Payments – Bankruptcy of Managing Agent
In an article by Hip-Consultants one particular problem that can occur when the freehold of the block is owned by a management company (particularly one which is not owned by the tenants) is reviewed. If a significant number of tenants default on their service charge payments this can leave the management company unable to settle its debt and force it into administration or liquidation. This can be a major issue for other tenants in the block as it means that the building and grounds are unmanaged and worse, potentially uninsured. This can render all of the flats in the block unsaleable or at best less valuable.
Read the full article here