Power of PMC’s
When a property management company is appointed to maintain your freehold, leasehold or retirement property, they not only have a responsibility to maintain your development, but they also play a major part in other matters.
‘Other matters’ include the requirement to ask permission of the property management company when you want to: re-mortgage your property, change the colour of your front door, have new windows fitted or build a conservatory.
This may sound okay, given the circumstances – but this ‘permission’ comes at a cost whereby you incur a fee for this privilege and once you have paid for this ‘application’ – they can refuse your request.
In addition to this, at the point of selling your property your solicitor will ask that you request a ‘Leasehold / Freehold Management Pack’ – which documents whether your account is in debt, etc.
Again – a fee is incurred for requesting this Leasehold / Freehold Management Pack and varies between £150-£400 (ex VAT).
If in a leasehold property and you’re paying ground rent, you will also have to pay a fee to request similar information!
Therefore, property management companies have major powers over residents in all properties and is why we are petitioning for change in the industry.
