Residential Service Charge Demands

When residential service charge demands are issued after completion of the works, a landlord must issue the demand within 18 months. If the demand is provided later than this, the landlord cannot recover the costs, unless a notice has been served during the 18 months stating that:

• Costs have been incurred.
• The tenant must contribute to them by payment of a service charge.

Until recently there has been no clear authority on this issue. However, the High Court has now provided guidance on what should be included in a notification. In this case, the landlord failed to issue the service charge demands within 18 months of the works. The landlord did provide an estimate of the cost of the works that had been carried out, but did not specify the actual costs incurred. The court held that this was insufficient and, therefore, the landlord was not entitled to recover the costs of the works. 

This checklist explains what a service charge is, when consultation is required, what the penalties 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)