Dwelling Disputes

Leasehold disputes

Applicable laws:

Landlord and Tenant Act 1985

Commonhold and Leasehold Reform Act 2002

Housing Act 2004

Case proceedings:

Leasehold and Residential Property Tribunals deal with applications to appeal leasehold disputes, leasehold service charges, leasehold enfranchisement and lease extension for houses and flats, and tenants’ association applications for recognition.

Applications regarding leasehold disputes are often concerned with Service Charges and whether they are payable and reasonable. The lease itself usually sets out the clauses/paragraphs and Schedules defining what is a Service Charge and what is within a Service Charge, such as "Service charges are variable charges payable directly or indirectly for services, repairs, maintenance, improvements or insurance, or the landlord's costs of management in respect of a dwelling. The whole or part of the charge varies or may vary depending on the cost actually incurred."

A landlord/freeholder may apply to the Tribunal for a determination that a leaseholder owes the demanded Service Charge amount.

Alternatively, a leaseholder may apply to the Tribunal when they have received a Service Charge demand letter, for determination of whether the demanded amount is payable and/or whether it is reasonable.

Remember there is an 18 month time limit...

Section 20B of the Landlord and Tenant Act 1985 states that:

20B Limitation of service charges: time limit on making demands.

(1) If any of the relevant costs taken into account in determining the amount of any service charge were incurred more than 18 months before a demand for payment of the service charge is served on the tenant, then (subject to subsection (2) ), the tenant shall not be liable to pay so much of the service charge as reflects the costs so incurred.

(2) Subsection (1) shall not apply if, within the period of 18 months beginning with the date when the relevant costs in question were incurred, the tenant was notified in writing that those costs had been incurred and that he would subsequently be required under the terms of his lease to contribute to them by the payment of a service charge.

Recent case law has ruled that the 18 months can be from the date that a Final Invoice for works has been received by the landlord/freeholder.

The importance of knowing the clauses of your lease is paramount. As an example, some clauses that may be included in your lease as payable Service Charges are:

- paragraph 1 deals with repairs etc. to the "structure and exterior" of only "the flat" and "the building".
- paragraph 2 concerns the cleansing and decoration of the building and its exterior stairways and balconies.
- paragraph 3 concerns sewers, drains, pipes and other service conduits.
- paragraph 4 concerns the maintenance and repair of pathways, driveways and forecourts.
- paragraph 5 concerns the entrance way and common parts (i.e the parts which are not flats) in "the building". This also refers to floor coverings.
- paragraphs 6,7,8, 9 and 10 deal with (respectively) insurance, rates and the like, the costs of managing agents, accountancy costs, and interest on any borrowed monies.
- paragraph 11 concerns costs incurred in response to any statutory requirements imposed in relation to the building.
- Paragraph 12 concerns legal costs and fee.

Those are the types of matters that Service Charges can be levied for.

Specific case are:

Empty dwelling management orders
Housing, health and safety rating system
Park homes
Leasehold disputes
Leasehold service charges
Leasehold enfranchisement and lease extension for houses and flats
Tenants’ association applications for recognition

For further information please get in touch.