Service charge demands: has notice been given in accordance with the lease provisions?

I’m regularly to be found on my soap box espousing the need to read, understand and implement the terms of leases, particularly where service charges are concerned.  In H Stain Ltd v Richmond [2021] UKUT 66 (LC) the Upper Tribunal considered a lease clause which required the lessee to be [...]

By |2021-06-27T17:06:10+01:0027 April 2021|Blogs, legal update, service charges|0 Comments

Recovery of insurance costs: does it matter if the policy hasn’t been placed in joint names?

*Most* leases contain a covenant that requires a landlord (or management company) to place insurance.  Clauses vary from lease to lease.  For example, some leases specify (in detail) the perils against which insurance should be placed.  Whereas others are less prescriptive. Some leases require a landlord to “note” the interest [...]

By |2021-06-29T21:40:06+01:0029 March 2021|Blogs, insurance, service charges|0 Comments

When is a demand a demand for the purposes of section 20B?

There are a raft of contractual and statutory restrictions on the recovery of service charges. In certain circumstances, failing to adhere to those restrictions is fatal to the recovery of service charges.   The 18 month rule Section 20B of the Landlord and Tenant Act 1985 is one of the [...]

By |2021-06-27T17:53:05+01:001 March 2021|Blogs, legal update, service charges|0 Comments

Recovery of corporate expenses via service charge

It’s not uncommon for lessee owned and controlled management companies to seek to recover certain costs in relation to the administration of the company or other costs, such as directors’ and officers’ insurance, via the service charge. But are these costs always a service charge item?  And can they always [...]

By |2021-06-29T21:21:45+01:0012 January 2021|Blogs, company matters, service charges|0 Comments

Does payment of service charges amount to an admission?

Lessees (and landlords) have a right to apply to the First Tier Tribunal (Property Chamber) for a determination whether a service charge is payable and, if it is, the amount that’s payable. However, no application may be made to the Tribunal in respect of a matter which has either been [...]

By |2021-06-27T23:22:56+01:0010 January 2021|Blogs, legal update, service charges, Tribunal|0 Comments

When is a management agreement a qualifying long term agreement?

It’s a feature of the relationship between a managing agent and their client that a management agreement exists between the parties.  And one of the features of the management agreement will be the term.  The agreement will (or at least should) set down how long it’s going to last. And [...]

By |2021-06-29T22:17:08+01:0029 December 2020|Blogs, section 20, service charges|0 Comments

“I didn’t receive my service charge demand….”

Cash is King, or so the saying goes. In a property management context, it is cash flow that is King. Service charge monies need to be collected, in order that those monies can be expended in the provision of services.  Arrears really do have a massive impact on the ability [...]

By |2021-06-29T19:31:54+01:0015 December 2020|Blogs, legal update, service charges|0 Comments

Apportionment of service charges

A well drafted lease will set out how service charges are to be apportioned between lessees.  Apportionment can take a wide variety of forms, ranging from an equitable split between lessees, to a stated percentage or alternatively based on what a landlord (or management company) considers just and equitable. Some leases [...]

By |2021-06-29T18:09:43+01:0014 December 2020|Blogs, legal update, service charges|0 Comments

Replacement of flat front doors

The Upper Tribunal in Southwark LBC v Various lessees of the St Saviours Estate [2017] UKUT 10 (LC) were called upon to consider the reasonableness (or otherwise) of a project of major works carried out by Southwark which included the replacement of the leaseholders’ front entrance doors, most of the communal [...]

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