Most well drafted leases contain an obligation for a leaseholder to pay service charges. From time to time, disputes arise in relation to those service charges. And often the Tribunal is called upon to determine the the liability to pay and reasonableness of the service charges.
Common service charge disputes
Are the service charges payable for that particular item of expenditure? Is it reasonable to incur those costs? Is the standard of service unreasonable and should the costs be limited accordingly? Are the costs of those major works recoverable?
These are just some examples of the types of dispute that the tribunal can be called upon to deal with.
What can the Tribunal determine?
The Tribunal derives its jurisdiction in service charge disputes from section 27A of the Landlord and Tenant Act 1985.
This enables the Tribunal to determine if a service charge is payable, and if so:
- the person by whom it is payable;
- the person to whom it is payable;
- the amount which is payable;
- the date at or by which it is payable; and
- the manner in which it is payable.
Actual costs or anticipated expenditure?
Disputes about service charges can relate to costs *actually* incurred as well as disputes about anticipated expenditure.
Maybe the dispute concerns one leaseholder. Or perhaps a collective.
Size doesn’t matter
Whatever the amount in dispute, or the number of parties involved, our team is on hand to help.
We’re recognised for our expertise in service charge disputes.
Get in touch to find out how we can help.