Leaseholders complain of rising charges

When Martina Short bought a flat in one of Birmingham’s most desirable entertainment complexes, she felt nervous and excited.

As a first time buyer, in 2010, it was to be a fresh start in a new home, to build equity and start a career.

Broadway Plaza includes restaurants and a cinema, and was described as a "premier entertainment and living space" when it opened in 2003.

But residents now say they feel trapped by rising service charges and a lack of a fire safety certificate which is preventing them selling.

Appartments at Broadway Plaza are run by Danesdale Land Ltd, which employs agents Centrick to oversee day-to-day management.

Ms Short, a leaseholder, complained charges had gone up to £400 a month.

She said: “It’s absolutely horrendous, I was basically working one day a week just for the management charges on the flat.

“It’s very depressing and it’s been terrible for my mental health."

When we visited the complex there was a lift out of order, stained communal carpets and two entrance doors had damaged locks.

Lee Cowell, from the Broadway Plaza Residents and Tenants Association, said: "Basic security is poor, doors broken, anyone can come in off the streets”.

All five lifts on site require replacement, Centrick said, and it is in the process of building up funds to replace them.

The flat owners also said they were concerned about fire safety assessments.

They have been unable to get the superior leaseholder to provide an EWS1 certificate.

Martina Short said that following the Grenfell Tower tragedy, mortgage lenders want to see the document before releasing funds to a potential buyer.

She has a new job in Oxford, but said she has been unable to move.

“I need the equity that I’ve supposedly been building up and it’s not there and I can’t sell because there isn’t an EWS1 form, and service charges are so high it puts buyers off," she said.

Residents said they are in touch with solicitors in order to challenge the service charges.

They want to manage their properties themselves, but cannot collectively buy their freehold because more than 25% of the floor space in their building is used for commercial purposes.

Centrick told the BBC it has held meetings with leaseholders and sent out letters to explain for the increases, which are required for "essential works".

It said it had been "working hard to address issues raised" since it took over the site in January 2022.

It also said it was "committed to working with leaseholders and the residents' association".

It is not just leaseholders craving reform.

Some freeholders who bought properties on newer housing estates have also been reporting high service charges for roads that have not been adopted by a local authority.

Residents of Barley Meadows, in Llanymynech on the Shropshire-Powys border, said their service fees had risen from £360 to £900 in a year, prompting them to set up their own management company.

“We’ve had unexpected charges to deal with including maintaining a water pumping station and repairing street lights”, said resident Neville Ford.

“We can’t see why there is any delay in Shropshire Council adopting the road."

The authority has been approached for comment.

The government has promised a new piece of legislation, the Leasehold and Freehold Reform Bill, will deliver a "fairer system".

The Department for Levelling Up, Housing and Communities said: “Increases in service charges without proper justification are completely unacceptable."

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