LTA 1985 s.21 question

[telly098]

Hi, would be most appreciated if someone could enlighten me on the following points:

1. where it says "If the service charges in relation to which the costs are relevant costs as mentioned in subsection (1) are payable by the tenants of more than four dwellings, the summary shall be certified by a qualified accountant", does this mean that if there are four flats plus another unit which is not a dwelling but a shop summaries have to be certified by an accountant or not?

2. where there are items such as legal costs or maintenance works, do they have to be broken down into specific items they consist of for the purpose of the summaries?

3. Also when freeholder makes long-term arrangements with someone to clean common parts for example does he have to provide leaseholders with a copy of some sort of a contract to show what those arrangements are?

Thanks so much.

[andydd]

Ignore the S21 listed as its not in force and irrelevant.

Here is the post from this site which lists the actual S21 which is currently in force >

http://www.landlordzone.co.uk/forums...efinitive-text

So..

1. Ignore, not relevant.

2. Prob should be broken down to an extent but not to individual items, (i.e two sponges and three dish cloths).

3. I'd say No, unless you actually challenged that point at an FTT and you put it to a FH to prove that the contract was a year or less or under £100.

[leaseholdanswers]

As the fifth unit is not a dwelling and I assume not a live work unit, then the certificate need not be certified.

No, if they are so obtuse however the inspection of invoices will clarify.

The argument will be that it is not along term contract or agreement simply a long running arrangement and therefore no specification needs to be provided. Is cleaning an issue?

[telly098]

Thanks.

Yes, cleaning is one of the issues. Charged for cleaning every week although it takes place only every two-three weeks. Charged for grass to be cut and weeding to be done by a gardener every month of the year although grass/weeds don't even grow in winter. Etc

[andydd]

telly098,

That's a slightly different issue, the FH can only recoup costs he has actually incurred, he cant charge for works that are not done, so in theory you could easily challenge this at an FTT BUT you may find that the gardener charges a set amount for the year and not actually monthly.

I'm not sure that this level of detail can be demanded using S21, don't forget that there is also S22 that gives you powers to visit the FH/MA and inspect paperwork. My reading of it is that having obtained a summary under S21 you can use S22 to delve deeper into whats paid and to whom, etc