Service Charge Rights & Obligations

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    Service Charge Rights & Obligations

    Service charge rights & regulations.

    Any service charge demand and reminder letter after 1st October 2007 must be accompanied by a formal summary of rights and obligations whose content and form is prescribed by Parliament.

    This was updated/ammended on 1st June 2009 when the Lands Tribunal was abolished and superseded with the Upper Tribunal and paragraph 6 of the summary was amended accordingly.

    Then on 1 July 2013, the Leasehold Valuation Tribunal (LVT) in England becomes a First-tier Tribunal (Property Chamber), again amendments apply.
    This document is prescribed by Parliament.

    My puzzle is when is a demand invalid?

    If the demand is for interim service charge does it need the Service charge rights & obligations to be accompanied? Basically can the same argument as Gilje be applied?

    If an interim service demand is sent with an out of date copy I understand that later the same demand can be resent with a correct copy. But are there time limitations, ie 18 month rule?

    Or as the demands are for interim Service Charge Gilje says the 18 month rule does not apply to interim demands as they are not Service Charge demands. Hence can a landlord resend interim Service Charge demands 3 years later if they were sending outdated R&O's?

    I look forward to these replies.

    #2
    The 18 month rule doesn't apply if the LH has been sent a demand, the first demand doesn't have to comply with anything I believe, it doesn't have to be accompanied by the summary and I don't believe it has to comply with s47/s48.

    It just has to be sent within the 18 month period, prob scribbled on the back on a fag packet would do, this gets round the 18 month rule BUT the actual demand must comply with the various rules and I assume that it must be accompanied by the version of the summary that is currently in force (i.e if its sent now, it must be the V3 FTT version).

    Obviously there is also the standard Stat Limations 6 year rule.

    It does make a difference wether they are interim demands but I don't fully understand the implications of this.
    Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

    I do not accept any liability to you in relation to the advice given.

    It is always recommended you seek further advice from a solicitor or legal expert.

    Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

    Comment


      #3
      Originally posted by andydd View Post
      The 18 month rule doesn't apply if the LH has been sent a demand, the first demand doesn't have to comply with anything I believe, it doesn't have to be accompanied by the summary and I don't believe it has to comply with s47/s48.

      It just has to be sent within the 18 month period, prob scribbled on the back on a fag packet would do, this gets round the 18 month rule BUT the actual demand must comply with the various rules and I assume that it must be accompanied by the version of the summary that is currently in force (i.e if its sent now, it must be the V3 FTT version).

      Obviously there is also the standard Stat Limations 6 year rule.

      It does make a difference wether they are interim demands but I don't fully understand the implications of this.

      Sorry Andy but I need to clarify that and hope this helps your understanding.

      Any demand for SC in advance in arrear one off or for balancing charges, admin charges or legal charges must be sent with the s47/48 info and the summary(s) as well as comply with the lease terms for calculation and timing.

      Hope that heps.
      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
        sam

        Its important to forget validity as it means different things to different people.

        If the demand is for interim service charge does it need the Service charge rights & obligations to be accompanied? Basically can the same argument as Gilje be applied?
        All demands must be sent with the appropriate summary. The demand is not invalid, the tenant has the right to withhold, and any legal costs are irrecoverable until they do.

        If an interim service demand is sent with an out of date copy I understand that later the same demand can be resent with a correct copy. But are there time limitations, ie 18 month rule?
        No this is an on account demand based on an estimate, 18 month rule applies to costs incurred. Moreover a new demand need not be sent, sending a current summary ( even if the demand was issued when the old summary applied) is sufficient. It would be daft not to send the summary and a certified copy of the original demand. Remember the summary creates a right to withhold.

        Or as the demands are for interim Service Charge Gilje says the 18 month rule does not apply to interim demands as they are not Service Charge demands.
        They are SC demands, just SC in advance, as prescribed in the lease. Ocassionally leases refer to SC as the final costs for the year and the interims as interim or to pay a sum on acccount of the SC yet to be determined, however all these sums are regarded, for the purposes of the law, as SC.

        Hence can a landlord resend interim Service Charge demands 3 years later if they were sending outdated R&O's?
        If they are for SC in advance , then the original demands still stand as provision of summary removes the right to withhold.
        if they send the figures in a new demand then the new demand with an old Summary creates right to withold. However if the demands were sent earlier with the then current Summary, that does not override those earlier demands.

        it is important to look carefully at the demands to see it if it an demands and statement as in most cases any transaction that are outstanding will be included. It is rare to see demands raised for charges as they arise as you might do in business, and send a separate statement.
        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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