Section 45 counter proposals

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    Section 45 counter proposals

    Hi, I have received S45 from F.
    1. Is F obliged to provide breakdown of premium.
    2. Do F's legal & valuation costs 'sit' within Schedule 13? I have stated zero costs for what I thought would only be compensation and or intermediate interests costs which they have counter proposed with their costs?
    3. F wants to bill service charge on budget payable 6 months in advance. This surely would make it impossible for me to inspect receipts to check the validity of costs. Can they insist on this?
    Many thanks

    #2
    1. No.
    2. No. See section 60 re T paying L's costs on completion.
    3. This depends on leases' wording. What does existing lease say? Is L trying to change it?
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Thanks Jeffrey,
      Re 3. the current lease states £30 due twice yearly plus the excess on actuals annually.

      Comment


        #4
        Originally posted by Fsplane View Post
        The current lease states £30 due twice yearly plus the excess on actuals annually.
        Eh? The £30 must surely be ground rent. I was asking about service charge.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment


          #5
          No it does relate to the service charge. The current lease states 2 payments of £30 over the year and then this is deducted from the excess that is charged annually on actuals.

          Comment


            #6
            I see. Modern lease drafting does involve service charge being payable before costs aree incurred- how else could L afford to pay them?- and T's rights to inspect receipts to check the validity of costs [post #1] then arise undr sections 18-30 of LTA 1985.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment


              #7
              But there is always an element of reserve for the future that is billed along with the actual excess to cover off any gaps between spend and funds.
              So they want the reserve amount 6 months in advance as well as budgeted costs for the next year 6 months in advance.

              Comment

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