breach of section 21 and 22 or LTA

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    breach of section 21 and 22 or LTA

    The managing agent has not provided financial accounts for the last 5 years. The leaseholders have nevertheless paid the service charges over the last 5 years.

    I understand that a criminal suit must be taken with the landlord but can leaseholders claim back their service charges if insufficient supporting documentation (ie. invoices) are provided? If so, where would they file this civil suit - at the Lvt?

    #2
    Unless the lease requires a set of accounts to be produced or a tenant or residents association make a request under section 21, and the building qualifies, they are not required to do so. The code of practice recomends that you do, especially if the lease is inadequate in this regard.

    If in the latter they are requested and fail to do so and or fail to allow the invoices supporting those to be inspected, then there are criminal penalties. The local authority is the enforcing authority.

    The lease may require a simple statement at year end- has anything been produced like that at all?

    If you want to challenge expenses you can do that at the LVT and is a civil matter.
    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


      #3
      For failure to comply with requests under section 21 and 22 of the Landlord & Tenant Act 1985 proceedings are through the magistrates court. If the LHA will not act on your behalf then you can bring a private prosecution. I think the maximum penalty is £2500.

      The legislation is totally daft. You don't get the info you are after and you can bet the Landlord will simply get a small fine. A better penalty for failure to comply would be the right to withold payment of service charges or the right to repayment if already paid.
      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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        #4
        Did your service charge include the cost of producing accounts?

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          #5
          Originally posted by Flashback1966 View Post
          Did your service charge include the cost of producing accounts?
          If the lease allows it yes.

          If the certification is under section 21 and is disputed, even if the lease makes no mention of any form of accounting or costs, the LVT will allow it, if reasonable.
          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


            #6
            Originally posted by leaseholder001 View Post
            The legislation is totally daft. You don't get the info you are after and you can bet the Landlord will simply get a small fine. A better penalty for failure to comply would be the right to withold payment of service charges or the right to repayment if already paid.
            Of course then you go to the LVT and as long as you can show sufficient reason to doubt the costs they will require disclosure at the risk of exactly that, their costs are not allowed as recoverable.

            I know there are a few odd decisions ......

            Of course you can also exercise RTM or appoint a manager and take the responsibility away.
            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

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