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Service Charge Recovery

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The following is an indication of fees likely to be incurred in a standard undefended claim for unpaid service charges where the offending leaseholder has a mortgage secured on the relevant leasehold property who pays prior to or following a determination of the service charge debt. The fees for this service are not fixed or capped and will vary from case to case depending on case specific needs. Accordingly, the following is a guide only as to the level of fees commonly incurred in such matters. Attention is drawn to the detail of the following and the Important notes at the foot of this page in relation to variations and exceptions to the following guide.

(i)     Letter before action for standard service charge arrears

£250 plus VAT (£300 inc of VAT) and plus disbursements (see below).

The disbursements will generally be £6.00 (no VAT) incurred in obtaining official copies of the title for the property in question and, where applicable, the landlord or superior leaseholder’s title. On occasion and where further titles are required, the disbursement costs may be higher than that example stated above. The disbursements costs may vary/exceed the above example where additional titles are required or, for reasons specific to the case in question, it is prudent to obtain additional title or other relevant documents for which a fee is charged to the firm. Whilst VAT is not payable on copy titles VAT may apply where other non title documents are required.

This fee guide assumes that: 

  • no contact is received by KDL Law, our client or its representatives, from the recipient of the letter before action (before or after it is written) or others on their behalf, save for payment of the full balance required, sent by electronic transfer to the correct account and correctly marked with the correct reference relevant to the case (all as detailed in the letter before action)

  • that any payment made by the debtor is received into the account of KDL Law before expiry of the deadline period set out within the letter before action

  • that no further action is required by KDL Law, its client or the client’s representatives in respect of the debt to which the letter before action relates.

(ii)    Issuing proceedings for a determination of a service charge debt

£500 - £800 plus VAT (£600 - £960 inc of VAT) and plus disbursements (see below).

The disbursements will generally be:

(a) A fee of £6.00 (no VAT) incurred in obtaining office copies of the official copy of the relevant lease or transfer for the property in question and, where applicable, the superior lease. On occasion and where further titles are required, the disbursement costs may be higher than that example stated above. The disbursements costs may vary/exceed the above example where additional titles are required or, for reasons specific to the case in question, it is prudent to obtain additional title or other relevant documents for which a fee is charged to the firm. Whilst VAT is not payable on copy titles VAT may apply where other non title documents are required.

(b) The Court fee relevant to the debt claimed. The Court fee will vary depending upon the level of the total amount of the debt subject to the claim (including to some extent the costs incurred to that date). The Court fee is set by the Court and the relevant scale can be found and confirmed by reference to the HM Courts and Tribunals website - Civil court fees (EX50) - GOV.UK (www.gov.uk).

This fee guide assumes that:

  • the address for service of proceedings is one within England or Wales and that postal service by the Court will amount to adequate service of the claim

  • no contact is received by KDL Law, our client or its representatives, from the recipient of the claim form (before or after it is served) or others on their behalf or with an interest in the property or the claim

  • the lease or transfer is of a format which is relatively standard and thus requires no more than a standard amount of time to consider in preparation of the proceedings

  • no superior title/lease requires examination in preparation of the proceedings

  • upon service of the claim form by the Court the full sum of the claim, including all and any fixed or claimed costs set out in the claim form are paid in full by electronic transfer to the correct account and correctly marked with the correct reference relevant to the case (all as detailed in the letter before action)

  • any payment made by the debtor is received into the account of KDL Law before expiry of the deadline period notified to the debtor by the Court on service of the claim form

  • no further action of any nature is required by KDL Law, its client or the client’s representatives in respect of the debt to which the claim relates.

(iii)   Serving Judgment 

£200 - £400 plus VAT (£240 - £480 inc of VAT). Often no disbursements are incurred at this stage save where the judgment needs to be or, for reasons specific to the case in question, is best personally served then a process server fee may be incurred. Such fees are often in the region of £150 - £500 plus VAT (£180 - £600 inc of VAT) but will vary depending on the method and ease of service and so could exceed the example sums stated above

The same assumptions as set out at (ii)(b) above apply to this fee guide, save that contact includes both before and after the serving of judgment.

(iv)   Drafting and serving a notice pursuant to section 146 Law of Property Act 1925

£450 - £1,000 plus VAT (£540 - £1,200 inclusive of VAT) and plus disbursements as set out below.

The disbursements will generally be: 

(a) £6.00 (no VAT) office copies fee for the provision of title for the property post judgment/determination. As with the above the disbursements costs may vary/exceed the above example where additional titles are required or, for reasons specific to the case in question, it is prudent to obtain additional title or other relevant documents for which a fee is charged to the firm. Whilst VAT is not payable on copy titles VAT may apply where other non title documents are required.

(b) Around £125 - £175 plus VAT (£150 - £210 inc of VAT) process server’s fee for service by hand of the Notice to a single address for service in England or Wales. The actual fee incurred may exceed the above example where service is not straight forward, more than a single visit is required to effect service, more than one address/party needs to be served.

The same assumptions as set out at (ii)(b) above apply to this fee guide save that contact includes both before and after the service of the Notice pursuant to section 146 Law of Property Act 1925.

Fee incurred in the provision of additional advice/Counsel's advice/Third Party advice or assistance

Where considered necessary before or during the conduct of a case additional advice, reports or input may be required on a specific aspect or aspects of the case with such advice being provided by KDL Law or a combination of KDL Law and third party Counsel (Barrister) or other third party provider (most commonly surveyor or other expert). Such additional time in the matter or fees of Counsel/third party provider will be incurred and are payable by our client at the rates shown in the terms of engagement letter and any updates thereto or at the quoted fees of Counsel/third party provider obtained in relevant case. Such fees are almost always subject to VAT.

VAT

VAT is charged on all costs at the prevailing rate at the time - presently 20%.

Important notes regarding fees referred to above

* All fee guides shown are subject to variation where an otherwise straight forward matter requires the need for additional work or administration beyond that normally expected for such work.

** Disbursement costs shown above are a guide only and actual costs incurred may be greater or less than those shown depending upon the specific circumstances of any particular matter.


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