Residential Property Service Charges

Administration costs and unpaid service charges

Property owners are likely to be concerned by a Leasehold Valuation Tribunal's decision that a landlord was not entitled to recover administration costs in connection with an unpaid service charge due under a lease.

The clause in the lease, which allowed recovery of costs and fees incurred by the landlord, was drafted too narrowly to allow the landlord to recover. Landlords may now fear that they could be left out of pocket when pursuing unpaid sums from tenants. This should be borne in mind when drafting leases and carrying out due diligence.

This checklist explains what a service charge is, when consultation is required, what the time limits are for failing to comply with the consultation requirements and what the time limits are for making service charge demands.

For further information please contact our Commercial Property Team.

Contact us

O'Neill Patient Solicitors LLP
Chester House, 2 Chester Road, Hazel Grove,  Stockport, Cheshire, SK7 5NT

Telephone:

0161 694 3000 / 0161 483 8555

E-mail:

info@oneillpatient.co.uk

Fax:

0844 576 2140 (we do not accept service by fax or email)