Recovering Service Charge From Residential Leaseholders, Please Help ...

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    Recovering Service Charge From Residential Leaseholders, Please Help ...

    Hello there,

    I work for a small property investment company.

    In a particular building there are 3 commercial units on the ground floor with 42 residential units above.

    In the end of October 2007, 6 of the residential units were sold on a 125 year long leasehold basis.

    Are there any time limits in recovering service charges from owners of the residential units that were sold?

    In the lease it states ‘the amount of service charge payable by the Lessee for the Lessors first financial year (being 01/04/07 to 31/03/2008) shall be £700.'

    Am I able to recover this?

    The lease then goes on stating future service charge requests need to have a statement of account with it. I can make this up by looking at the costs at the time etc.

    Am I able to recover this?

    The lease with regards to ground rent, says it is £350 per annum for first 25 years, can this be recovered also?

    Cheers.

    #2
    Never buy what you don't understand......or pay someone who does.

    Ground rent is recoverable up to 6 years as long as the invoices contain the notification under section 47 of the landlord and tenant act 1987 and the notice under section 166 of CLRA 2002, and are correctly billed eg ground rent from to

    You might be able to recover the initial SC specified, £700, in the lease but for later periods you are out of time if it has not been billed for estimated costs and actual costs except for the last 18 months. Your lease will almost certainly require the estimate £700 to be compared against actual expenses and any difference treated as the lease requires. If you spent more that £700, then you are out of time recovering any difference even if the lease says so, by virtue of section 20b of the landlord and tenant act 1985. If you spent less then it has to go back to the leaseholders ( or as the lease requires) if that is what the lease says. Yes that may seem unfair - refer to my opening sentence
    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.

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