Our Real Estate Dispute Resolution team regularly advises on residential service charge matters. From how a service charge should be demanded to the limitation period for recovery, First Tier Tribunal for the determination of reasonableness, Section 20 consultation procedure and more.
What are residential service charges?
More and more of us now live in shared accommodation, with benefits including a concierge to sign for our post, or a communal garden to enjoy. However, these properties rightfully often come with a residential service charge – a fee that helps with their upkeep. These charges are paid by the tenant or leaseholder to the landlord or property development company, and are used for everything from maintenance to repairs. They ensure a high standard of living for all residents, with the costs divided up equally. So far, so fair, right?
Despite this egalitarian approach, disputes do sometimes arise, which is where we can help. Sometimes, the tenant or leaseholder might feel that they are being unfairly charged or overcharged, while on the other hand, the landlord or property development company may feel they are being pushed to provide services and maintenance outside the norm. In such cases, reaching a quick decision that works for both parties is essential.
How can we help?
We advise landlords, leaseholders, management companies, RTM companies and managing agents on all matters relating to service charges and their recovery.
We have extensive expertise and experience advising on:
- Interpretation of contractual (lease) and the landlord's statutory obligations.
- When and how service charge should be demanded by a landlord.
- Limitation period for recovery.
- Reasonableness of service charges demanded including bringing and defending applications in the First Tier Tribunal for the determination of the reasonableness of service charges.
- Section 20 consultation procedure for major works and long-term agreements; including applications to the First Tier Tribunal for dispensation orders.
- Recovery of unpaid service charges.
- Applying to the First Tier Tribunal to vary the terms of leases which fail to make satisfactory provision in respect of the recovery of expenditure or computation of service charge.
