Section 21 (LTA 1985) - Summary of Service Charge Accounts Request

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    Section 21 (LTA 1985) - Summary of Service Charge Accounts Request

    A Leaseholder sent an email stating previous requests for Account Summaries were unanswered. Email requests are prior to newly appointed Board of Directors. The emailer has formal surveying knowledge & should know the process. Can we challenge past requests due to them not being formally submitted? Must a request for summary of Service Charge Accounts be formal (letter)?

    #2
    You could just supply what he asks for.

    Presumably he is threatening you with the fines for not supplying the data within X months, don't worry there is nobody to enforce the regulations.

    I have been the one asking in the past.

    Comment


      #3
      Originally posted by Silvershine View Post
      Can we challenge past requests due to them not being formally submitted? Must a request for summary of Service Charge Accounts be formal (letter)?
      I don't think that the legislation that gives leaseholders the right to request summaries of service charge accounts states that the request has to be made in any particular way, so I doubt that you have an argument here.

      I would suggest that you should provide the information being requested, perhaps including an apology for the request having been overlooked in the past and explaining that a new board of director has now taken over. There is also nothing to prevent you also suggesting to the leaseholder that it might be better for them to send any similar requests by mail in the future because emails are more likely to be overlooked and there is no guarantee that they are received.

      You should be aware that, in general, a leaseholder who is requesting account summaries is probably doing so with the intention of then requesting all supporting invoice, and is likely to be considering challenging previous service charge costs. Any suggestion that you are deliberately trying to prevent the leaseholder from obtaining this information is unlikely to be treated favourably by a tribunal if a challenge to service charges goes ahead.

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        #4
        Apparently, section 21/22 of the Landlord & Tenant Act 1985 gives leaseholders the right to inspects receipts and request account charges.

        Comment


          #5
          Originally posted by TruthLedger View Post
          Apparently, section 21/22 of the Landlord & Tenant Act 1985 gives leaseholders the right to inspects receipts and request account charges.
          It does.
          Section 21 gives leaseholders the right to request a summary of charges, and once a summary has been received section 22 gives the right to request the opportunity to inspect all invoices that support the costs included in the summary, and make copies.

          The summary itself is of no real use to leaseholders (they will already know how much they have been charged for a service charge year, and the summary doesn't give any real indication of whether or not charges are reasonable).
          On the other hand, having copies of the invoices for costs that were charged to the service charge account is very useful, if not essential, if a leaseholder is considering challenging service charges.

          Best practice for anyone managing a block of leasehold properties is to produce an annual summary of the charges, even if no request is made by individual leaseholders and there is no requirement in the lease, and to give leaseholders access the opportunity to see supporting invoices if they want to see them.
          If the block is being managed properly there won't be anything to hide, and if it's not being managed properly then practices need to be changed.

          If you have a leaseholder who is trying to be difficult, and is potentially looking for any reason to dispute charges, it is even more important that you make sure that things are done properly.

          Comment


            #6
            I'd say that good practice is to provide a PDF of the invoices at the end of the year, and good practice is to provide the information by a real time portal.

            The original question really should not have needed to be asked because it indicates a failure to keep the leaseholders properly informed.

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