It turns out the letting agents are ripping off both parties:
http://www.telegraph.co.uk/finance/...d-is-charged-616-to-change-light-fitting.html
Foxtons, the London based estate agency, could be hit with a legal bill running into tens of millions of pounds, solicitors have claimed, after a landlord launched action over the extortionate cost of a light fitting repair.
Dr Chris Townley, a law lecturer at King’s College, employed Foxtons in 2011 to let and manage his London property.
For two years things went smoothly, but then in 2013 he was left incredulous after receiving a £616 bill for a repair to a light fitting at the flat.
Unhappy with the standard of work he complained and was told it had been carried out by a subcontractor.
However when he contacted the company that had carried out the work, Maintenance1st, he was horrified to discover they had actually charged much less for the work.
In fact the subcontractor had only charged £412.50 for the job, with the rest of the bill being made up of charges added on by Foxtons.
When he challenged the firm, which was valued at almost £800 million when it floated on the stock market two years ago, it admitted that it had added £203 in extra charges.
• Foxtons under pressure amid 'fee fear'
• Foxtons estate agents founder sues garage after £1m Lamborghini blows up
Solicitors acting for Dr Townley have now written to Foxtons demanding compensation, claiming that the hidden charges were not covered in the landlord’s contract.
But they also claim that if successful thousands of other landlords could also be entitled to pay-outs which could end up costing the company more than £40 million.
The final bill Dr Townley received was £550 plus £66 VAT, however the amount charged by the subcontractor had only been £412.50.
Foxtons subsequently told Dr Townley it had added a £137.50 commission – 33 per cent of the subcontractor’s fee.
On top of that Foxtons added a ten per cent “ad hoc management charge” plus VAT because the invoice was over £500.
However Dr Townley pointed out that the only reason it exceeded that sum was because of the 33 per cent fee added by Foxtons.
Solicitors, Leigh Day, acting for Dr Townley have now begun legal action, writing to the estate agent, alleging the ‘hidden commission’ was not covered in the landlord’s contract.
The firm says thousands of other landlords will also be entitled to compensation from Foxtons, even if they did not have work carried out and estimate the final bill could reach as much as £42 million.
Dr Townley said: “When I first heard there was a commission I was not happy, but thought it may be 2 or 3 per cent. When I found out the real amount I thought it was shocking.”
A spokesman for Foxtons said: “We are incredibly disappointed to hear when any customer is dissatisfied with the service they have received, however, as a legal dispute we are not in a position to comment on the specifics of this case.
“We are satisfied though that our fees are clearly laid out within our terms and conditions and that approvals are obtained from our landlords before works commence on their property.”
http://www.telegraph.co.uk/finance/...d-is-charged-616-to-change-light-fitting.html
Foxtons, the London based estate agency, could be hit with a legal bill running into tens of millions of pounds, solicitors have claimed, after a landlord launched action over the extortionate cost of a light fitting repair.
For two years things went smoothly, but then in 2013 he was left incredulous after receiving a £616 bill for a repair to a light fitting at the flat.
Unhappy with the standard of work he complained and was told it had been carried out by a subcontractor.
However when he contacted the company that had carried out the work, Maintenance1st, he was horrified to discover they had actually charged much less for the work.
In fact the subcontractor had only charged £412.50 for the job, with the rest of the bill being made up of charges added on by Foxtons.
When he challenged the firm, which was valued at almost £800 million when it floated on the stock market two years ago, it admitted that it had added £203 in extra charges.
• Foxtons under pressure amid 'fee fear'
• Foxtons estate agents founder sues garage after £1m Lamborghini blows up
Solicitors acting for Dr Townley have now written to Foxtons demanding compensation, claiming that the hidden charges were not covered in the landlord’s contract.
But they also claim that if successful thousands of other landlords could also be entitled to pay-outs which could end up costing the company more than £40 million.
The final bill Dr Townley received was £550 plus £66 VAT, however the amount charged by the subcontractor had only been £412.50.
Foxtons subsequently told Dr Townley it had added a £137.50 commission – 33 per cent of the subcontractor’s fee.
On top of that Foxtons added a ten per cent “ad hoc management charge” plus VAT because the invoice was over £500.
However Dr Townley pointed out that the only reason it exceeded that sum was because of the 33 per cent fee added by Foxtons.
Solicitors, Leigh Day, acting for Dr Townley have now begun legal action, writing to the estate agent, alleging the ‘hidden commission’ was not covered in the landlord’s contract.
The firm says thousands of other landlords will also be entitled to compensation from Foxtons, even if they did not have work carried out and estimate the final bill could reach as much as £42 million.
Dr Townley said: “When I first heard there was a commission I was not happy, but thought it may be 2 or 3 per cent. When I found out the real amount I thought it was shocking.”
A spokesman for Foxtons said: “We are incredibly disappointed to hear when any customer is dissatisfied with the service they have received, however, as a legal dispute we are not in a position to comment on the specifics of this case.
“We are satisfied though that our fees are clearly laid out within our terms and conditions and that approvals are obtained from our landlords before works commence on their property.”
