- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 21 Dec 2020
Service charge and 18 month rule
Under the terms of the relevant lease, service charge demands were required to be accompanied by estimates of projected expenditure over the next year. No such estimates were included for four years. That oversight was later corrected, but the tenant argued that was not liable to pay the charges due to the landlord’s failure to comply with the terms of the lease.
The tenant’s arguments did not persuade the First-tier or Upper Tribunals. However, in allowing his appeal, the Court cited Section 20B of the Landlord and Tenant Act 1985. That provision, often called the 18-month rule, requires that costs incurred by landlords more than 18 months prior to the service of demands for payment are not recoverable from tenants.
The Court found that the 18-month rule applies equally to demands for payment on account as to demands in respect of costs that have already been incurred. The purpose of the rule was to ensure that tenants receive proper demands for service charges within 18 months of the relevant costs being incurred.
That had not happened in the current case because the demands had not become valid until the estimates were also served on the tenant. If the outcome of the case resulted in the tenant receiving a windfall, that was a consequence of the landlord’s default.
 Find out more
 Related articles on Designing Buildings Wiki
Featured articles and news
Improving facilities, accessibility and overall appearance.
Free download of TG 12/2021 available.
TESP works with The Youth Group to form skill sharing network.
Big tech collaborates on platform for the built environment.
Letter signed by 21 organisations sent to MHCLG.
A look at the Government's strategic approach.
Steps to help reduce the spread of infection inside buildings.
This social media-centred hobby can be both dangerous and illegal.
Millwork wall treatment with a long and illustrious history.
HSE introduces cumulative exposure calculator.
The Edwardians and their houses.
Cut off from civilian life for over 900 years.
Gaining green support from the carbon giants.
Click the button to subscribe.