Your options when you cannot afford high property factoring fees in Scotland

What can I do if I cannot afford high property factoring fees?

High factoring fees are placing an increasing financial strain on many property owners in Scotland, with some property factoring companies being criticised for huge price rises for what is often only essential basic maintenance and insurance.

The purpose of a factor is to carry out ongoing maintenance, cleaning, and servicing of communal areas in property where there is more than one homeowner, such as the entrance hall and stairs of tenement flats, communal grounds, or lifts.

They’re also responsible for ensuring that the building is insured, and arranging for any emergency repairs or renovation to be carried out. The problem is that property owners are facing large bills, often unexpectedly, for which they have not budgeted, causing what appears to be unnecessary financial hardship.

How to change a property factor?

Your title deeds should set out the requirements for changing your property factor. If not, you need to refer to the Tenement Management Scheme, or TMS. The title deeds may state that all homeowners must vote in favour of change, but in practice this requirement is unrealistic, especially in a large development.

In general terms, if two-thirds of homeowners agree that the existing factor should be fired, then this can go ahead. One of the principal requirements to operate as a property factor in Scotland, is to be registered in the Register of Property Factors.

It’s worth knowing that if your property factor isn’t registered, they may be guilty of a criminal offence and face a fine of up to £5,000.

High factoring fees, or unexpected bills for servicing and repair of communal areas, can lead to serious financial issues for property owners. If you’re experiencing problems with increasing debt, or need professional advice on how to deal with your current factoring company, our experts at Scotland Debt Solutions can help.