EXCLUSIVE: Residents Fury Over 'Eye-Watering' Service Charge Demands

Residents of Plymouth's prestigious Royal William Yard are up in arms after receiving "eye-wateringly huge" invoices from managing agent RMG, demanding significant overspends for the 2022/23 and 2023/24 financial years.

The Royal William Yard Residents Association (RWYRA) has branded the charges a "mishmash of ancient costs" and is urging leaseholders to challenge the demands collectively.

The RWYRA revealed that they had anticipated some of these claims and had raised concerns during their Annual General Meeting in March. Despite "strenuous resistance" in meetings with developer Urban Splash (US), RMG, and even local MP Luke Pollard, the charges have been issued, prompting accusations of "incompetence and mismanagement."

A key point of contention for residents is the lack of transparency promised by Urban Splash. The RWYRA states that an undertaking for "any and all current and historical charges" to be made transparent through a scrutiny process has "not happened."

While the Residents Association is not permitted to advise residents not to pay, they firmly believe there are "substantial grounds to challenge aspects of them." They are encouraging leaseholders to leverage their rights under various Landlord and Tenant Acts, highlighting the '18-month rule' and the right to examine original invoices and VAT charges.

The RWYRA cannot take a challenge to the Tribunal Service themselves, as these must be pursued by individual leaseholders. However, they stress that "acting in unison" can minimise costs and inconvenience. They are advising residents to formally acknowledge receipt of the invoices but clearly state their intention to challenge them, rather than an outright refusal to pay immediately.

A template response has been provided by the RWYRA, which includes informing RMG of the intention to pursue a challenge via the Tribunal Service and asking the Tribunal to "stay" any demand until the process concludes. Residents are also reminded that despite immediate payment dates on the invoices, the Payment Terms Act 2017 sets a 30-day statutory default for payment.