SERVICE CHARGES
Service charges are often a source of friction between freeholders, flat owners, and management companies. Disagreements can arise over the calculation, reasonableness, or transparency of the charges, often leading to disputes.
Whether you maintain a building or contribute to its upkeep, understanding your rights and obligations is crucial to avoiding disputes.
We assist with all service charge matters, guiding landlords, tenants, and managing agents through the legal landscape. Our goal is to ensure fairness, transparency, and compliance thereby minimising the potential for costly disputes and ensuring smooth management relationships.
What Are Service Charges?
Service charges are payments made by flat owners to cover the costs of maintaining, repairing, and insuring a building. These charges can also include services like cleaning, gardening, and security, depending on the terms of the lease. Ensuring service charges are calculated and applied correctly is key to fostering a smooth relationship between landlords and tenants.
Disputes Over Service Charges
TDisagreements can arise when tenants feel that service charges are unreasonable or that the services provided do not justify the fees. In some cases, disputes center on whether specific charges are recoverable under the lease terms. Landlords and managing agents may also face non-payment or challenges over the reasonableness of their costs. We offer advice on all aspects of service charge disputes, helping tenants contest excessive charges and assisting landlords in justifying expenses and recovering payments.
The Section 20 Consultation Process
Under the Landlord and Tenant Act 1985, landlords must follow the Section 20 consultation process when undertaking major works or entering into long-term agreements. This process ensures that tenants are informed of proposed works, provided with estimates, and given the opportunity to raise objections or nominate contractors. If a landlord, freeholder, management company, or managing agent fails to comply with this legal requirement, they may only recover up to £250 per tenant, regardless of the actual costs incurred. Non-compliance can result in disputes, financial penalties, or tribunal cases. We guide landlords through the proper steps to ensure compliance and help tenants safeguard their rights throughout the process.
Service Charge Compliance
For landlords, managing agents, or right-to-manage companies, compliance with legal obligations surrounding service charges is essential. Failure to follow the correct procedures can lead to disputes, with tenants potentially refusing to pay or taking the matter to a tribunal. We help landlords and managing agents adhere to their legal responsibilities, ensuring transparency and fairness when demanding service charge payments.
For Tenants
TIf you are a tenant facing an unreasonable service charge demand, or if the services provided do not align with the charges levied, we can help you challenge these costs. Whether through negotiation or by representing you in a tribunal or court, our aim is to resolve disputes efficiently and ensure you only pay for reasonable and justifiable expenses.