Commercial Service Charges

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    Commercial Service Charges

    Although less contentious than residential service charges issues still crop up.

    In general the charges are set out in the lease along with the approriate standard,and are subject to the supply of goods and services legislation.

    The RICS have produced a code of practice which can be bought and which is avialable free to download from the BPF.

    http://www.bpf.org.uk/en/files/bpf_d...ial_leases.pdf
    Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

    #2
    I wouldn't say "less contention", the principles are different.

    Commercial property service charges are unregulated, which means the parties can agree whatever they like, although generally the tenant doesn't have much bargaining strength. For a tenant, it is said that the service charge is akin to a blank cheque in favour of the landlord. The extent of services might not be open to negotiation, but it's sometimes possible to agree a cap on the amount of yearly charge, excluding the building insurance.

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      #3
      This looks like the old edition to me.

      Furthermore, it should be noted that this is simply guidance and most of the larger companies which administer service charges have not adopted the policies.
      [I]The opinions I give are simply my opinions and interpretations of what I have learnt, in numerous years as a property professional, I would not rely upon them without consulting with a paid advisor and providing them with all the relevant facts[I]

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        #4
        The contention in most cases tends to be a little more adult on the whole.

        You are right the 2nd edition which I have in pdf sans glossy photo cover was issued in May 2011.

        this was an old link on their site and the 2nd ed is here
        http://www.bpf.org.uk/en/files/bpf_d...ial_leases.pdf

        But don't look at it as simply guidance it is the approved code of practice which all landlords and agents should have regard to and be prepared to say why a particular approach was chosen in favour of the code.
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment


          #5
          In my opinion, the only reason some landlords and agents adhere to codes of practice is through fear the market would be regulated if not. By showing willing, the wolf of government is kept from the door!

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            #6
            Don't forget the 3rd edition now in force

            http://www.rics.org/uk/knowledge/pro...cial-property/
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


              #7
              I m struggling to pay business rate. R. V £29000. Only option I have left is now separating shop floor making into 2 business and sub leasing other part. Does separation has to be an wall or can I separate with fire proof hard boards?

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                #8
                I have spoken to the valuation office today and as long as they are 2 visibly different businesses you don't need a wall.

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                  #9
                  How far back can you go if you wish to inspect service charge accounts is it 6 yrs ? or more

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                    #10
                    Originally posted by desamax View Post
                    How far back can you go if you wish to inspect service charge accounts is it 6 yrs ? or more
                    If you were looking at taking an assignment you'd ask for the last two or three years s/c at most. The limitation period is six full years so there would be no point querying s/cs more than six years old

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                      #11
                      Can a commercial tenant withhold services charges under section 21b of the LTA?
                      Thanks

                      Comment


                        #12
                        Is there a template letter for the tenants right to see landlords accounts for maintenance, service charge, management fees, and building insurance payments, Relating to the property ? Do you quote L&T act etc ? can anyone advise or point me in the direction of how to go about obtaining this information.
                        Thanks

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