Service charge - Revision history

Designing Buildings at 08:53, 1 November 2020

2020-11-01T08:53:31Z

← Older revision		Revision as of 08:53, 1 November 2020
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	* The Leasehold Advisory Service. Service charges and other charges.		* The Leasehold Advisory Service. Service charges and other charges.

−	[[Category:Property_law]] [[Category:Property_development]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Property_law]] [[Category:Property_development]]

Designing Buildings at 12:11, 2 February 2018

2018-02-02T12:11:53Z

← Older revision		Revision as of 12:11, 2 February 2018
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	=== External references ===		=== External references ===

−	* The Leasehold Advisory Service. ~~[http://www.lease-advice.org/documents/Service_Charges.pdf~~ Service charges and other charges].	+	* The Leasehold Advisory Service. Service charges and other charges.

	[[Category:Property_law]] [[Category:Property_development]]		[[Category:Property_law]] [[Category:Property_development]]

Editor at 18:28, 4 September 2017

2017-09-04T18:28:08Z

← Older revision		Revision as of 18:28, 4 September 2017
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	Additional charges outside the service charge might include; ground rent, consents to make alterations, the provision of information when a property is being sold and so on.		Additional charges outside the service charge might include; ground rent, consents to make alterations, the provision of information when a property is being sold and so on.

−	NB Leaseholders of flats were given the Right to Manage by The Commonhold and Leasehold Reform Act 2002. This gives leaseholders the right to force the transfer of a landlord's management to a ‘right to manage company’ set up by the leasholders. The right was introduced to empower leaseholders, who generally hold the majority of value in the property.	+	NB: Leaseholders of flats were given the Right to Manage by The Commonhold and Leasehold Reform Act 2002. This gives leaseholders the right to force the transfer of a landlord's management to a ‘right to manage company’ set up by the leasholders. The right was introduced to empower leaseholders, who generally hold the majority of value in the property.

	= Find out more =		= Find out more =
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	* Schedule of dilapidations.		* Schedule of dilapidations.
	* Scott schedule.		* Scott schedule.
		+	* Service charge and 18 month rule.
	* Supersession.		* Supersession.
	* Vacant possession.		* Vacant possession.

Editor at 14:58, 5 April 2017

2017-04-05T14:58:41Z

← Older revision		Revision as of 14:58, 5 April 2017
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−
	A service charge is a charge made by landlords to recover costs incurred in providing services to leased premises.		A service charge is a charge made by landlords to recover costs incurred in providing services to leased premises.

	Service charges may covers costs such as:		Service charges may covers costs such as:
−	*General maintenance and repairs.	+
−	*Building insurance.	+	* General maintenance and repairs.
−	*Cleaning of common areas.	+	* Building insurance.
−	*Central heating.	+	* Cleaning of common areas.
−	*Lifts.	+	* Central heating.
−	*Caretaking and porterage.	+	* Lifts.
−	*Garden maintenance.	+	* Caretaking and porterage.
−	*Lighting.	+	* Garden maintenance.
−	*Alarms.	+	* Lighting.
−	*Management fees.	+	* Alarms.
		+	* Management fees.

	Generally improvement works are not chargeable, although they may be in local authority or housing association leases.		Generally improvement works are not chargeable, although they may be in local authority or housing association leases.

	The leasehold agreement should set out the way in which the service charge is organised, and may include details of:		The leasehold agreement should set out the way in which the service charge is organised, and may include details of:
−	*The costs that can be charged.	+
−	*The proportion payable by the leaseholder.	+	* The costs that can be charged.
−	*The service charge payment period.	+	* The proportion payable by the leaseholder.
−	*Whether payment is made in advance.	+	* The service charge payment period.
−	*The method of calculation.	+	* Whether payment is made in advance.
−	*The value of chargeable works above which the leaseholder must be consulted.	+	* The method of calculation.
		+	* The value of chargeable works above which the leaseholder must be consulted.

	Service charges can be fixed, but increasingly they are calculated based on actual or estimated costs which can vary from year to year. Payment may be in advance, with a ‘sinking fund’ to even-out irregular costs. Such a fund must be in an account held in a trust. At the end of the year an additional payment or credit may be made to balance the charge. Where chares are in arrears, there may be an interest payment.		Service charges can be fixed, but increasingly they are calculated based on actual or estimated costs which can vary from year to year. Payment may be in advance, with a ‘sinking fund’ to even-out irregular costs. Such a fund must be in an account held in a trust. At the end of the year an additional payment or credit may be made to balance the charge. Where chares are in arrears, there may be an interest payment.
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Betterment.	+
−	*Break clauses in leases.	+	* Betterment.
−	*Dilapidations.	+	* Break clauses in leases.
−	*Ground rent.	+	* Correct service charge procedures.
−	*Leasehold.	+	* Dilapidations.
−	*Lease Negotiations - Tenants Checklist.	+	* Ground rent.
−	*Licence to alter.	+	* Leasehold.
−	*Peppercorn rent.	+	* Lease Negotiations - Tenants Checklist.
−	*Rent-free period.	+	* Licence to alter.
−	*Rent review.	+	* Peppercorn rent.
−	*Reversion.	+	* Rent-free period.
−	*Schedule of dilapidations.	+	* Rent review.
−	*Scott schedule.	+	* Reversion.
−	*Supersession.	+	* Schedule of dilapidations.
−	*Vacant possession.	+	* Scott schedule.
		+	* Supersession.
		+	* Vacant possession.

	=== External references ===		=== External references ===
−	*The Leasehold Advisory Service. [http://www.lease-advice.org/documents/Service_Charges.pdf Service charges and other charges].

−	[[Category:Property_law]]	+	* The Leasehold Advisory Service. [http://www.lease-advice.org/documents/Service_Charges.pdf Service charges and other charges].
−	[[Category:Property_development]]	+
		+	[[Category:Property_law]] [[Category:Property_development]]

Designing Buildings at 12:13, 3 September 2014

2014-09-03T12:13:32Z

← Older revision		Revision as of 12:13, 3 September 2014
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	*Break clauses in leases.		*Break clauses in leases.
	*Dilapidations.		*Dilapidations.
		+	*Ground rent.
	*Leasehold.		*Leasehold.
	*Lease Negotiations - Tenants Checklist.		*Lease Negotiations - Tenants Checklist.
	*Licence to alter.		*Licence to alter.
−	*~~Ground~~ rent.	+	*Peppercorn rent.
	*Rent-free period.		*Rent-free period.
	*Rent review.		*Rent review.

Designing Buildings at 07:40, 3 September 2014

2014-09-03T07:40:02Z

← Older revision		Revision as of 07:40, 3 September 2014
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	Service charges are a common cause of dispute between leaseholders and landlords. The Landlord and Tenant Act 1985 sets out the rules for service charges, defining what is considered a service charge and setting out requirements for reasonableness and for prior consultation of leaseholders.		Service charges are a common cause of dispute between leaseholders and landlords. The Landlord and Tenant Act 1985 sets out the rules for service charges, defining what is considered a service charge and setting out requirements for reasonableness and for prior consultation of leaseholders.

−	Service charges are not limited by the Act, but the landlord may only make reasonable charges. However, there is no statutory definition of what is ‘reasonable’.	+	Service charges are not limited by the Act, but the landlord may only make reasonable charges. However, there is no statutory definition of what is ‘reasonable’.

	Service charges can be challenged at a Leasehold Valuation Tribunal (LVT). An appeal may also be made to a Leasehold Valuation Tribunal for charges for work that has been poorly carried out.		Service charges can be challenged at a Leasehold Valuation Tribunal (LVT). An appeal may also be made to a Leasehold Valuation Tribunal for charges for work that has been poorly carried out.
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	*Lease Negotiations - Tenants Checklist.		*Lease Negotiations - Tenants Checklist.
	*Licence to alter.		*Licence to alter.
		+	*Ground rent.
	*Rent-free period.		*Rent-free period.
	*Rent review.		*Rent review.

Designing Buildings at 10:11, 2 September 2014

2014-09-02T10:11:08Z

Designing Buildings at 10:07, 2 September 2014

2014-09-02T10:07:43Z

← Older revision		Revision as of 10:07, 2 September 2014
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−

	A service charge is a charge made by landlords to recover costs incurred in providing services to leased premises.		A service charge is a charge made by landlords to recover costs incurred in providing services to leased premises.
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	NB Leaseholders of flats were given the Right to Manage by The Commonhold and Leasehold Reform Act 2002. This gives leaseholders the right to force the transfer of the landlord's management to a ‘right to manage company’ set up by them. The right was introduced to empower leaseholders, who generally hold the majority of value in the property.		NB Leaseholders of flats were given the Right to Manage by The Commonhold and Leasehold Reform Act 2002. This gives leaseholders the right to force the transfer of the landlord's management to a ‘right to manage company’ set up by them. The right was introduced to empower leaseholders, who generally hold the majority of value in the property.

−	Find out more	+	= Find out more =

−	Related articles on Designing Buildings Wiki	+	=== Related articles on Designing Buildings Wiki ===
	*Betterment.		*Betterment.
	*Break clauses in leases.		*Break clauses in leases.
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	*Vacant possession.		*Vacant possession.

−	External references	+	=== External references ===
	*The Leasehold Advisory Service. [http://www.lease-advice.org/documents/Service_Charges.pdf Service charges and other charges].		*The Leasehold Advisory Service. [http://www.lease-advice.org/documents/Service_Charges.pdf Service charges and other charges].
		+
		+	[[Category:Property_law]]
		+	[[Category:Property_development]]

Designing Buildings: Created page with " A service charge is a charge made by landlords to recover costs incurred in providing services to leased premises. Service charges may covers costs such as: *General maintenan..."

2014-09-02T10:07:11Z

Created page with " A service charge is a charge made by landlords to recover costs incurred in providing services to leased premises. Service charges may covers costs such as: *General maintenan..."

New page

A service charge is a charge made by landlords to recover costs incurred in providing services to leased premises.

Service charges may covers costs such as:
*General maintenance and repairs.
*Building insurance.
*Cleaning of common areas.
*Central heating.
*Lifts.
*Caretaking and porterage.
*Garden maintenance.
*Lighting.
*Alarms.
*Management fees.

Generally improvement works are not chargeable, although they may be in local authority or housing association leases.

The leasehold agreement should set out the way in which the service charge is organised, and may include details of:
*The costs that can be charged
*The proportion payable by a leaseholder.
*The service charge payment period.
*Whether payment is made in advance.
*The method of calculation.
*The value of chargeable works above which the leaseholder must be consulted.

Service charges can be fixed, but increasingly they are calculated based on actual or estimated costs which can vary from year to year. Payment may be in advance, with a ‘sinking fund’ to even-out irregular costs. Such a fund must be in an account held in a trust. At the end of the year an additional payment or credit may be made to balance the charge. Where chares are in arrears, there may be an interest payment.

Where service charges are variable, prospective leaseholders should establish the level of historic charges to give an indication of the likely payment that will be required.

Service charges are a common cause of dispute between leaseholders and landlords. The Landlord and Tenant Act 1985 sets out the rules for service charges, defining what is considered a service charge and setting out requirements for reasonableness and for prior consultation of leaseholders.

Service charges are not limited by the Act, but the landlord may only make reasonable charges. However, there is no statutory definition of what is ‘reasonable’. Service charges can be challenged at the Leasehold Valuation Tribunal (LVT).

An appeal may also be made to the Leasehold Valuation Tribunal for charges for work that has been poorly carried out.

Service charges are not payable until a demand has been made in writing which includes the landlord’s name and address. The landlord must issue demands within 18 months of incurring the cost. Leaseholders have a statutory right to seek a summary of the service charge account.

Failure to pay the service charges can lead to court proceedings, and under extreme circumstances, to eviction.

Additional charges outside the service charge might include; ground rent, consents to make alterations, the provision of information when a property is being sold and so on.

NB Leaseholders of flats were given the Right to Manage by The Commonhold and Leasehold Reform Act 2002. This gives leaseholders the right to force the transfer of the landlord's management to a ‘right to manage company’ set up by them. The right was introduced to empower leaseholders, who generally hold the majority of value in the property.

Find out more

Related articles on Designing Buildings Wiki
*Betterment.
*Break clauses in leases.
*Dilapidations.
*Leasehold.
*Lease Negotiations - Tenants Checklist.
*Licence to alter.
*Rent-free period.
*Rent review.
*Reversion.
*Schedule of dilapidations.
*Scott schedule.
*Supersession.
*Vacant possession.

External references
*The Leasehold Advisory Service. [http://www.lease-advice.org/documents/Service_Charges.pdf Service charges and other charges].

← Older revision		Revision as of 10:11, 2 September 2014
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	The leasehold agreement should set out the way in which the service charge is organised, and may include details of:		The leasehold agreement should set out the way in which the service charge is organised, and may include details of:
−	*The costs that can be charged	+	*The costs that can be charged.
−	*The proportion payable by a leaseholder.	+	*The proportion payable by the leaseholder.
	*The service charge payment period.		*The service charge payment period.
	*Whether payment is made in advance.		*Whether payment is made in advance.
Line 30:		Line 30:
	Service charges are a common cause of dispute between leaseholders and landlords. The Landlord and Tenant Act 1985 sets out the rules for service charges, defining what is considered a service charge and setting out requirements for reasonableness and for prior consultation of leaseholders.		Service charges are a common cause of dispute between leaseholders and landlords. The Landlord and Tenant Act 1985 sets out the rules for service charges, defining what is considered a service charge and setting out requirements for reasonableness and for prior consultation of leaseholders.

−	Service charges are not limited by the Act, but the landlord may only make reasonable charges. However, there is no statutory definition of what is ‘reasonable’~~. Service charges can be challenged at the Leasehold Valuation Tribunal (LVT)~~.	+	Service charges are not limited by the Act, but the landlord may only make reasonable charges. However, there is no statutory definition of what is ‘reasonable’.

−	An appeal may also be made to ~~the~~ Leasehold Valuation Tribunal for charges for work that has been poorly carried out.	+	Service charges can be challenged at a Leasehold Valuation Tribunal (LVT). An appeal may also be made to a Leasehold Valuation Tribunal for charges for work that has been poorly carried out.

	Service charges are not payable until a demand has been made in writing which includes the landlord’s name and address. The landlord must issue demands within 18 months of incurring the cost. Leaseholders have a statutory right to seek a summary of the service charge account.		Service charges are not payable until a demand has been made in writing which includes the landlord’s name and address. The landlord must issue demands within 18 months of incurring the cost. Leaseholders have a statutory right to seek a summary of the service charge account.

−	Failure to pay ~~the~~ service charges can lead to court proceedings, and under extreme circumstances, to eviction.	+	Failure to pay service charges can lead to court proceedings, and under extreme circumstances, to eviction.

	Additional charges outside the service charge might include; ground rent, consents to make alterations, the provision of information when a property is being sold and so on.		Additional charges outside the service charge might include; ground rent, consents to make alterations, the provision of information when a property is being sold and so on.

−	NB Leaseholders of flats were given the Right to Manage by The Commonhold and Leasehold Reform Act 2002. This gives leaseholders the right to force the transfer of ~~the~~ landlord's management to a ‘right to manage company’ set up by ~~them~~. The right was introduced to empower leaseholders, who generally hold the majority of value in the property.	+	NB Leaseholders of flats were given the Right to Manage by The Commonhold and Leasehold Reform Act 2002. This gives leaseholders the right to force the transfer of a landlord's management to a ‘right to manage company’ set up by the leasholders. The right was introduced to empower leaseholders, who generally hold the majority of value in the property.

	= Find out more =		= Find out more =