Results for "service charges"

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When are service charges reasonable?

It is fair to say that leaseholders have little control over the costs incurred and works undertaken in the management of the development of which their flat forms part. They do, however, have the benefit of various statutory provisions that provide some protection as to whether or not the charges…

Can payment of Service Charges be deemed an admission of the debt and the consequences of not doing things properly.

In this Legal Update we delve into the case of Gorrara and others v Kenilworth Court Block E RTM Co Ltd . Background This is a case that has rumbled on since 2019 through two appeals and no doubt has cost both sides considerable sums in costs. It highlights the need for those managing property to:-…

Reasonableness of advance service charges when payment due from third party

Section 19 (1) (a) of the Landlord and Tenant Act 1985 (LTA 1985) states that service charges are payable “ only to the extent that they are reasonably incurred ”. This means that a Landlord should take steps to ensure that costs incurred are on items reasonably required and then only at a level…

Set off of overpaid service charges against interim (on account) demands - Brett & Brett -v- Harlow Court Limited

This week we’re reporting on an interesting case which looked at whether on account service charge demands were unreasonable due to a claimed failure by the landlord to set them off against them credits for prior service charge demands. Background The case in question, Brett & Brett -v- Harlow…

How far back can service charges and rent be recovered?

Whilst it should not occur, it is unfortunately a more common problem than it should be. The issue under discussion in this Legal Update is where the payer of service charges, rent or estate rent charges is not pursued for some reason where they have neglected, or elected not, to pay charges due…

Limitation on recovery of service charges - “The 18 Month Rule”

Despite the serious consequences for landlords and management companies, including limitations on recovering service charges from residential leaseholders, “the 18 month rule” appears to be one of the least understood provisions amongst landlords, management companies and managing agents. In this…

Do I have to pay service charges for items that I do not use?

We deal with a lot of enquiries from managing agents and landlords where disputes arise as to the liabilty for costs relating to works to repair, say, the communal lift in the building or decoration to the internal common parts to which the basement or ground floor tenant has no access. In such…

Leaseholders selling up with unpaid service charges

It is a common misconception that any arrears owing at the point of the sale of a flat will pass to the incoming leaseholder. This view is incorrect and can present landlords with a debt that may be difficult to recover. In this update, we remind readers of the best approaches to this issue so that…

Options for Landlords to recover commercial service charges and rent

Increasingly residential developments now include a mixture of residential property in the form of houses and/or flats but also commercial units. Whilst KDL Law is well known for its expertise within the residential leasehold sector, we also advise clients in terms of their ability to recover…

How to deal with the recovery of service charges or ground rent when the leaseholder has died

It is always a very sad event when a leaseholder passes away. We obviously encourage the landlord/RMC/RTM company and their managing agent to always assist the beneficiaries and those affected by the death insofar as is reasonably possible. However, how should you act where accruing service charge…

Everything You Always Wanted to Know About Service Charges During Coronavirus* (*But Were Afraid to Ask)

We are now officially 6 months into this interesting period that is 2020. We are all adorning face masks to leave the house, anti bac spray is now a staple in most bags or pockets, we give a wide berth to people walking toward us down the street and we haven’t shaken anyone’s hand for what seems…

Leaseholders who wish to sell but who have unpaid service charges

It is a common misconception that any arrears owing at the point of the sale of a flat will pass to the incoming leaseholder. This view is incorrect and can present landlords with a debt that may be difficult to recover, once the outgoing leaseholder has moved on. In this update we remind readers…