A service charge is an amount paid by leaseholders to the landlord or property management company to cover the costs of services, maintenance, repairs, and management of a leasehold property.

Disputes related to service charges and management may include disagreements over the reasonableness of service charges, disputes regarding the quality or standard of services provided, challenges to the appointment or performance of property management companies, or disputes over maintenance responsibilities and costs.

Service charges and management disputes are primarily governed by the Landlord and Tenant Act 1985, as amended by the Commonhold and Leasehold Reform Act 2002. The regulations include the Service Charges (Consultation Requirements) (England) Regulations 2003 and the Service Charges (Summary of Rights and Obligations, and Transitional Provisions) (England) Regulations 2007.

Landlords and property management companies are legally obligated to provide accurate and transparent information about service charges, consult with leaseholders on major works or long-term agreements, issue service charge demands within legal timeframes, and ensure the reasonableness of the charges.

Leaseholders can challenge service charges they consider unreasonable or improperly demanded. They may seek redress through the First-tier Tribunal (Property Chamber), which has jurisdiction to determine disputes regarding service charges. Leaseholders should follow the statutory procedures outlined in the Landlord and Tenant Act 1985.

Generally, leaseholders should continue to pay service charges even during a dispute. However, in some cases, if there are legitimate grounds for withholding payment, leaseholders may be able to do so. It’s crucial to seek legal advice and follow proper procedures to avoid potential repercussions.

While case laws can provide guidance, it’s important to consult updated legal resources or seek advice from legal professionals for the most recent precedents. Some notable reported cases include Daejan Investments Ltd v. Benson and Others [2013] UKSC 14, and Triplerose Ltd v. 90 Broomfield Road RTM Co Ltd [2015] EWCA Civ 282.

Alternative dispute resolution methods, such as negotiation, mediation, or arbitration, can be effective ways to resolve service charge and management disputes outside of court. These methods aim to reach a mutually agreeable resolution between the parties involved.

Sky Solicitors can provide expert advice and representation in service charge and management disputes. We can review the lease and relevant documentation, assess the reasonableness of service charges, guide you through statutory procedures, and represent your interests in negotiations or before the First-tier Tribunal if necessary.

Sky Solicitors can provide expert advice and representation in service charge and management disputes. We can review the lease and relevant documentation, assess the reasonableness of service charges, guide you through statutory procedures, and represent your interests in negotiations or before the First-tier Tribunal if necessary.