She bought and sold a flat after only six months and had to pay out her contingency fund contribution.
Worse, it was needed to pay for new underground carpark gates which might reasonably have been expected to be part of the new building’s warranty.
The utter valuelessness of these NHBC warranties in so many cases is more of a scandal than fees on sale of any type.
The Leasehold Knowledge Partnership is deluged with cases where blocks of flats have a raft of defects and are either not covered by the warranty or the insurance or the freeholder simply will not make a claim.
All in all, it is far easier to have the leaseholders pay for it.
We sympathise with Fleeced for this case, but we are aware of sites where leaseholders are in control and do impose a contingency fund fee on sale.
It can be a good way of doing this.
Here is Fleeced’s account:
The attached photo shows that all the flats were not even sold when a problem arose with the electronic gates.
Because I was the first person to sell within the first 6 months I ended up indirectly paying for the repairs to the gates myself because I had paid 1% to PMSL for the contingency fund. I had already been ripped off £45,000 in a part-exchange deal and forced to pay for repair costs to the gates when Pegasus should have paid for the repairs under the 2 years NHBC warranty.
Pegasus and Peverel were complicit in the financial exploitation.
As AM has said a reputable management company plans long term for all maintenance work/repairs paid for out of the service charges. But PMSL is unscrupulous and collects exit fees of 1% for a contingency fund that enables the corruption to carry on. It’s a racket that must be stopped.