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Construction of the lease
Reasonableness
Service charge demands
Administration charges
Summary of leaseholder's rights
Insurance
Managing agents
Reserve funds
The 18-month rule
Consultation of tenants
Compromise of service charge dispute
Legal costs
Transfer to First-tier Tribunal
Section 47

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Service and administration charges and insurance



Gross LJ in Daejan Investments Ltd v Benson [2011] EWCA Civ 38 at para 7).
    “One of the singular aspects of most long leases of flats is that the landlord covenants to repair and maintain the block but the tenants covenant to meet the cost through a service charge. Often, service charges extend beyond repair to cover improvements. How, when and by whom and at what cost the work is done is decided by the landlord, despite the fact that where leases are long, the tenants effectively own the block. (A 99 year term is usually thought to be worth c.99% of freehold value.) The landlord decides how to spend his tenant's money and at common law there is little control or basis for complaint by the tenants. Statutory consultation under the Landlord and Tenant Act 1985 fills this gap. Its importance must not be understated”
The pages in this section of the site look at a number of matters relating to service charges. For a full list see the contents section on the left or use the drop down menu at the top.

For restrictions on forfeiture in service charge cases click here.

For variation of service charge provisions in leases click here.


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