Flat Living WEBSITEGUIDE Service charges & accounts LEASE YOURBLOCK MANAGE


CHARGES& ACCOUNTS


ServicechargeS areone of themost emotiveissues foranyoneowningaflat; howmuchshouldyou be paying;are yougetting good valueformoney;what happensifyou can’tfind themoney?The sectionofour websitededicated to the


SERVICE MAINTENANCE &SAFETY HEALTH CASELAWDISPUTES


subjectofservice charges andaccounting helpsyou findanswerstoall these questions and more. This area of thewebsite is splitintoanumber


of easy-to-navigate sections: nService charges


EFFICIENCY ENERGY INSURANCE


nCollection and arrears nService charge accounts nChallenging the service charge


Goto:http://www.flat-living.co.uk/ advice/19-service-charges-accounts to find outmore


What if I don’t agree withmyservice


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What are


servicecharges? Servicechargesarecollectedfor themaintenance,insurance,repair of thebuildingandcommunal areas plustheemployment of staffand management of theproperty


ServicechargeS canbesplit in to three sections: nReservefunds–which are forlongtermexpenditure,for


example roof replacement. nCyclical expenses–which are formoreregular expenses like external andcommunalarea


decoration. nDaytoday expenses–which arefor thecleaning, insurance, salaries etcand otheritemswhich are payable each year. Servicecharges canvary


each year dependentonthe expendituredue forthatperiod andtheyare required to be reasonable.Details ofwhat is includedtobepaidwiththe servicecharges is set outinthe leaseand allcontributions will bemetbythe leaseholders as it is notusualfor thelandlord to contribute to these costs.


40 Whenpurchasing a leasehold


flat, it isimportant to findoutwhat thecurrentandfutureservice charges areandwhat the level of the reserve fundmaybe forany majorworks that couldbe planned. Servicecharges apportionment


should be clarifiedinthe lease but,unfortunatelythisisnot always donewell andleases oftenrefer to theamountpayable by each leaseholdertobefair andreasonable. This couldbe determined to be,for example, therateablevalue or thesquare footage of the property.●


Toreadmoreonservicecharges andtodownloadacopyof ServiceCharges–Summaryof tenants’rightsandobligations, availableasapdf filewhichcan bedownloadedandprinted,goto: http://www.flat-living.co.uk/ advice/326-what-are-service- charges


chargedemand? It alwaysmakessensetocheck yourservicechargedemandsbut, beforeyouchallengethem,you needtomakesureyouhavesome understandingofwhatthelawsays


accordingto LEASE thegovernment’sfree legal advice service for leaseholders and landlords, thefirst thingtodoisto read and understand your lease.Whether or notyou areliabletopay service charges usuallydepends on your lease. However, if the demand is unreasonable then the lawis behind you.Rememberthough, thatwhat you think is unreasonable andwhatthe lawsees as unreasonable may not be the same. The LEASEteamofqualified solicitors will be happy, to advise you. Here they answer someof


themost frequently asked questions:


Where do I start?


Aservice chargedemand must show thelandlords nameandaddress andbe accompanied by a summary of your rights and obligations. Thedemandisnot payable untilbothrequirementshave been complied with.


Do I really need to pay for all these items?


You cannot be charged foritemsnotreferredtoin


thelease.Inparticular, if improvements are being proposed to thebuilding, make sure thelease allows the landlord to carry out and chargefor such works. An obligation on the landlord to maintainand repair themain structureand common parts does notnecessarilymean, say, they can build a bin store whereone didnot previously exist.


I am being charged for a management fee – is this allowed?


Only if the lease allows!


Do Ihave the righttoask formoreinformation?


You are entitled to request fromyour landlord a written summary of costs incurred during theprevious accounting year (or, if thereis notone,the 12monthsupto the date of your request).●


Toreadthis article in full,go to:http://www.flat-living. co.uk/advice/480-what- if-i-dont-agree-with-my- service-charge-demand


Formoreinformation andadownloadable fact sheet visithttp://www. lease-advice.org orcall theLEASEteamon020 73745370.


Issue 15 Flat Living


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