Interim Service Charge Account

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    Interim Service Charge Account

    I run the freehold company to a small block of flats, in which I own one of the flats. I'm trying to get one of the leaseholders to clear up his garden. The Leasehold Agreement seems to allow for the freeholder to do this and reclaim costs.

    During my communications with the leaseholder, or more specifically his solicitor, I have been asked to provide an Interim Service Charge Account.

    Can anyone tell me what this is and whats involved - what level of detail, receipts etc?

    I produce a service charge account when I send the charges out initially, which is just estimated costs for the coming year.

    #2
    What does the lease say in regard to how service charges should be accounted for?
    Use advice/information provided on a public forum at your own risk. If you wish to act with minimal risk then consult a lawyer.

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      #3
      Originally posted by nealsmear View Post
      I run the freehold company to a small block of flats, in which I own one of the flats. I'm trying to get one of the leaseholders to clear up his garden. The Leasehold Agreement seems to allow for the freeholder to do this and reclaim costs.

      During my communications with the leaseholder, or more specifically his solicitor, I have been asked to provide an Interim Service Charge Account.

      Can anyone tell me what this is and whats involved - what level of detail, receipts etc?

      I produce a service charge account when I send the charges out initially, which is just estimated costs for the coming year.
      Are you sure that he asked for an Interim Service Charge Account?
      If 'yes', make him pay for the extra work on your part.
      However, might he instead have asked- under s.21- for a summary of relevant costs? That's:
      a. more serious;
      b. a statutory right for T;
      c. to be complied with within one month (or, if later, six months from the account period end); and
      d. not something for which T has to pay- although you can recharge costs to the normal service charge payable by all of the leaseholders.
      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).

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        #4
        Originally posted by jeffrey View Post
        Are you sure that he asked for an Interim Service Charge Account?
        If 'yes', make him pay for the extra work on your part.
        I'd check what the lease says first though. There may be a requirement on the freeholder to provide an interim service charge account and the cost may not be something the freeholder can charge for.
        Use advice/information provided on a public forum at your own risk. If you wish to act with minimal risk then consult a lawyer.

        Comment


          #5
          Originally posted by leaseholder001 View Post
          I'd check what the lease says first though. There may be a requirement on the freeholder to provide an interim service charge account and the cost may not be something the freeholder can charge for.
          I agree; but I've never yet seen such a requirement.
          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


            #6
            It simply mean a service charge account statement showing whether T is in arrears or is up to date with his payments - with charges in one column, and payments in the next.

            Comment


              #7
              Does he mean an estimate of the present year's expenditure and calculation of the interim/provisional/on account service charge.

              I'd call it a a budget estimate or provisional service charge calculation but I suppose somebody might refer to it as a statement although I agree the word "statement" tends to refer to a list of amounts due and paid rather than a detailed calculation.
              RICHARD WEBSTER

              As a conveyancing solicitor I believe the information given in the post to be useful (provided it relates to property in England & Wales) but I accept no liability except to fee-paying clients.

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