Are you concerned about service charge disputes?
Service Charge disputes are one of the main causes of landlord and tenant disputes.
Landlords are obliged by law to present the Service Charge to the Leaseholder in accordance with the terms of the lease and also make available to leaseholders the accounts which comprise the annual services charge.
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Leaseholders should also be given notice of any extraordinary repairs and maintenance charges, including repairs carried out as an emergency.
The Landlord and Tenant Act 1985 sets out the basic rules for service charges. It defines what is considered a service charge, and sets out requirements for making sure costs are reasonable and for landlords to consult leaseholders before entering into any agreement for work or services which would lead to a service charge.
The sort of disputes that may arise over a Service Charge include:
- Failure to attach a full breakdown of costs with a Service Charge invoice
- Failure to notify tenants of when and where they can inspect accounts
- Unreasonable administration fees
- Unexplained maintenance charges
- If the service charge is not handled properly by the Landlord then the Leaseholder may not be obliged to pay the same.
Our team advises both landlords and tenants on service charge disputes including representing clients at the First-tier Tribunal.
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Dispute Resolution Team
Holly is a Member and Head of Mullis and Peake’s Dispute Resolution Department
Martyn is our Chairman and the firms' Compliance Officer for Legal Practice