Service charge – do I have to pay?

pic of leasehold flats service charge pay property118

by Readers Question

10:21 AM, 19th April 2023, 3 years ago 4

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Landlord News Landlords Questions Lettings & Management

Hello, I own my leasehold flat in a block of 14 apartments. The management company has hiked the service charge from £2,500 to £6,500 pa.

There is some work to be done on the garden due to land slip but we’ve had no section 20 notice.

Do we have to pay this in advance of the work taking place?

Thank you,

Kate

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Tags: leasehold, management company, service charge

Comments

Seething Landlord

Member Since January 2020 - Comments: 1102 - Articles: 1

12:00 PM, 19th April 2023, About 3 years ago

Read the lease first of all and if you are a shareholder in the management company exercise your right to attend the AGM.

You might well have to pay the service charge if it is in accordance with the lease. As far is I understand it, the S20 consultation would need to take place before the work is commissioned rather than before the money for it is raised, although it would usually be done the other way round unless they plan to raise the money over several years by establishing a sinking fund.

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Freda Blogs

Member Since July 2013 - Comments: 754

3:07 PM, 19th April 2023, About 3 years ago

How old is the block – are there any developer or contractor warranties still extant to deal with the landslip?

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Kizzie Read Full Bio

Member Since October 2022 - Comments: 410

6:04 PM, 19th April 2023, About 3 years ago

You must comply with the lease and pay service charge. You have legal right under Landlord &tenant act 1985 section 21(1) to request a summary of costs for last accounting year. Lease-advice.org get a template letter to send to whoever your lease states is lessor or landlord (might be the management company) to whom you pay service charge under provisions of your lease.
Before major work in garden begins the landlord must consult leaseholders under section 20 landlord &tenant act and provide 3 quotes for the work

3 Report Comment Reply
Kathryn Watson

Member Since April 2023 - Comments: 1

4:21 PM, 21st April 2023, About 3 years ago

Thank you for the comments. Very helpful

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