Service and administration charges

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, specifically in the context of residential leases and tenancies. For a full list see the contents section on the left or use the drop down menu at the top.

For general principles relating to service charges, which will appy in all cases - whether residential or commercial - go to the service charge section in the Landlord and tenant (general) part of the site.

For variation of service charge provisions in leases click here.

 

Back to top

Copyright © Property Law UK