0% Service Charge / Insurance?

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    0% Service Charge / Insurance?

    My situation is that there are currently 6 flats in the building.

    One flat was originaly owned by the FH and his lease had him not contribute any service charge and no insurance. (The flat is now sold on).

    My question is whether this is legal. I know the distribtion does not have to be equal and the FH can proportion at their will as long as it adds up to 100%, but can one flat be completely exempt from all costs?


    Many thanks.

    #2
    Two thoughts:

    1. It's probably legal. Did your solicitor on purchase not alert you to this problem (because presumably yours suggests that the service charge apportionment is 20%)?
    2. You may, may, have some ability to take the matter to LVT to get the % changed, but I've no idea whether you would be successful.

    Comment


      #3
      Your starting point is the lease full wording on %'s. They often have a provision for amendment or alteration. if that is possible, then one route is to ask that it is varied, and if ignored or refused exercise arbitration rights under the lease.

      Depending on the lease wording and the support of others you may have the right to apply to the LVT to amend under sections 35 to 37 of the Landlord and Tenant Act 1987.

      Contact lease_advice.org for further info.
      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


        #4
        Originally posted by LHolder View Post

        My question is whether this is legal. I know the distribtion does not have to be equal and the FH can proportion at their will as long as it adds up to 100%, but can one flat be completely exempt from all costs?


        Many thanks.
        Some leases don't state a %age of the service charge that is payable. Merely that it should be a fair proportion of the service charge, as determined by the landlord. If that is the case with your lease, then one flat being completely exempt would not be a fair proportion.

        As advised earlier, it depends how your lease is worded.

        Comment


          #5
          Originally posted by boletus View Post
          Some leases don't state a %age of the service charge that is payable. Merely that it should be a fair proportion of the service charge, as determined by the landlord. If that is the case with your lease, then one flat being completely exempt would not be a fair proportion.

          As advised earlier, it depends how your lease is worded.
          That is an example where the clauses are variable and can be determined at the LVT or by arbitration
          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 leaseholdanswers View Post
            That is an example where the clauses are variable and can be determined at the LVT or by arbitration
            Thanks lha, that confirms what I was sort of fishing for.

            Comment


              #7
              Two of the leases (inc mine) have us pay 20%, the other 3 leases which are newer have them pay a share "which is to be calculated by a managing agent acting reasonably".

              Is the exempt flat, therefore, within its rights?

              Comment


                #8
                Originally posted by LHolder View Post
                Two of the leases (inc mine) have us pay 20%, the other 3 leases which are newer have them pay a share "which is to be calculated by a managing agent acting reasonably".

                Is the exempt flat, therefore, within its rights?
                But what does it say exactly re 20%, is there a review clause? it may be elsewhere in the lease
                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


                  #9
                  Originally posted by leaseholdanswers View Post
                  But what does it say exactly re 20%, is there a review clause? it may be elsewhere in the lease
                  No (apparent) review clause.

                  In principle, say that the leases are all worded correctly, is it possible legally to have one flat exempt from all charges?

                  Comment


                    #10
                    Originally posted by LHolder View Post
                    No (apparent) review clause.

                    In principle, say that the leases are all worded correctly, is it possible legally to have one flat exempt from all charges?
                    Yes. The question is therefore can you change that, and for that, have a good look at the lease for a review clause. Otherwise you are looking at relying on section 35 to 37 as above.
                    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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