Designing Buildings at 12:26, 26 January 2021

2021-01-26T12:26:14Z

← Older revision		Revision as of 12:26, 26 January 2021
Line 23:		Line 23:
	* Service charge and 18 month rule.		* Service charge and 18 month rule.

−	[[Category:~~Case_law~~]] [[Category:~~DCN_Case_Law~~]] [[Category:Property_law]]	+	[[Category:DCN_Case_Law]] [[Category:DCN_Commentary]] [[Category:DCN_Guidance]] [[Category:Case_law]] [[Category:Property_law]]

Editor at 18:27, 4 September 2017

2017-09-04T18:27:41Z

← Older revision		Revision as of 18:27, 4 September 2017
Line 21:		Line 21:
	* Leasehold.		* Leasehold.
	* Service charge.		* Service charge.
		+	* Service charge and 18 month rule.

−	[[Category:Case_law]] [[Category:Property_law]]	+	[[Category:Case_law]] [[Category:DCN_Case_Law]] [[Category:Property_law]]

Editor: Created page with "Residential leases usually contain detailed procedures that must be followed before valid demands for service charges can be raised. Some landlords sidestep such requirements for..."

2017-04-05T14:58:20Z

Created page with "Residential leases usually contain detailed procedures that must be followed before valid demands for service charges can be raised. Some landlords sidestep such requirements for..."

New page

Residential leases usually contain detailed procedures that must be followed before valid demands for service charges can be raised. Some landlords sidestep such requirements for reasons of convenience, but an Upper Tribunal (UT) decision has underlined the hazards inherent in such a course.

The case of Jetha & Anr v Basildon Court Residents Company Limited (2017) concerned a prestigious block of 56 flats, the common parts of which were owned by a services company.

The tenants of 11 of those flats had refused to pay service charges due to various concerns about the property’s management. The company launched proceedings to recover arrears of more than £40,000.

The First-tier Tribunal (FTT) found that the lease did not provide for the collection of interim service charges on account. Those charges and contributions to a sinking fund maintained by the company had not been agreed at an annual general meeting (AGM), as required by the lease.

The FTT, however, found that the disputed bills were payable on the basis that the procedure employed by the company was well established and the tenants had never objected to it in the past.

In upholding the tenants’ challenge to the latter ruling, the UT noted that the requirement that service charges be approved by a majority at an AGM was an important safeguard. It was neither unfair nor unjust for the tenants to rely upon the letter of the lease and, in the circumstances, the disputed bills were not payable.

--[[User:Rex_Cowell_Solicitors|Rex Cowell Solicitors]]

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Land registry searches.
* Lease Negotiations - Tenants Checklist.
* Leasehold.
* Service charge.

[[Category:Case_law]] [[Category:Property_law]]

Correct service charge procedures - Revision history

Designing Buildings at 12:26, 26 January 2021

Editor at 18:27, 4 September 2017

Editor: Created page with "Residential leases usually contain detailed procedures that must be followed before valid demands for service charges can be raised. Some landlords sidestep such requirements for..."