Accrued uncommitted service charges

When an RTM company takes over, the leaseholders' money doesn't stay with the old manager.

What has to be paid over

• Everything leaseholders paid in service charges (including any reserve fundReserve fundMoney collected from leaseholders in advance, where the lease allows it, to spread the cost of large future expenses such as roof replacement or redecoration.), plus any investments and the interest or income earned on them;
• minus what is needed to pay costs incurred before the acquisition date.

It must be paid on the acquisition date or as soon as reasonably practicable afterwards (s.94).

If there's a disagreement

Either side can ask the First-tier TribunalFirst-tier Tribunal (Property Chamber)The tribunal in England that decides most leasehold disputes, including right to manage claims, whether service charges are payable or reasonable, and applications for dispensation from Section 20 consultation. to decide the amount (s.94(3)).

In practice

Ask early, in writing, for a statement of the funds held, including the reserve, and the costs the old manager says are still to be paid. Record what you expected, what was claimed and what arrived. Pay the money into the company's own bank account, kept separate as trust moneyTrust money (section 42)Service-charge money paid by leaseholders, which the law says is held on trust to pay the costs it was collected for and, subject to that, for the leaseholders who paid it, not as the receiving company's own money..