Are MQA-G service charges good value for money (VFM)?
At the Jan 2020 AGM the chairman proclaimed to leaseholder that “We deliver VFM.”
“… you may recall a few years ago I prepared a comparison of MQ service charges to other similar developments. This was following a challenge from a shareholder who owns a similar property in Kidbrooke Village (KV). Once analysed it turned out that the actual service charge in 2016 for that property in Kidbrooke Village was £3,3028 plus parking fees and here at MQ the service charge was £2758. Today a similar property at Kidbrooke Village attracts a service charge of £4688 compared to £2,900 here at MQ. We deliver VFM”. (not recorded in published minutes.)
However this is not comparing like with like. Residents at Kidbrooke Village also benefit from
- 24 hours concierge,
- gym,
- swimming pool,
- cinema room,
- meeting rooms etc.
all of which add significant amounts to the service charge bill and so mean this is not a valid comparison – it is like comparing a basic model Ford to a high spec Mercedes.
Furthermore, service charges at KV are based on the size or the flat – the £4688 figure given is for a large three bed property at KV, as the table below shows a two and one bed flat would be much lower.
| Kidbrook Village service charges 2019-20 | |||||||
| beds | sq m | sq ft | s. charge | cost/sqft | Charge if in MQ | Difference | |
| 3 | 103 | 1109 | £4,600 | £4.15 | £2,960 | £1,640 | |
| 2 | 64 | 689 | £2,859 | £2,960 | -£101 | ||
| 1 | 51 | 549 | £2,278 | £2,960 | -£682 | ||
| 1 | 38 | 409 | £1,697 | £2,960 | -£1,263 |
Therefore, the owner of a two bedroomed 64sq m flat in MQA-G is paying £101 more in service charges at MQ than they would for the same size flat at KV and the owner of a one bedroomed 38 sq m flat in MQA-G is paying £1,263 more. Moreover, at KV they would also benefit from 24 hour concierge, gym, swimming pool etc.
Alternatively ,the comparison can be made the other way. The owner of a 1 bed 41.5 sqm flat in Greenfell Mansions (previously advertised on PrimeLocation) who pays £2960 in service charges at MQ would pay £1,855 at KV or £1,105 less in KV than in MQA-G.
Why do those managing MQ feel it necessary to give this partial and arguably misleading account to leaseholder at the AGM? Why was this part of the proceedings not minuted? Do those managing MQ really deliver the value for money they claim?