628. Limitation of service charges: reasonableness of relevant costs etc.

Relevant costs1 are to be taken into account in determining the amount of a service charge2 payable for a period:

(1)     only to the extent that they are reasonably incurred3; and

(2)     where they are incurred on the provision of services or the carrying out of works, only if the services or works are of a reasonable standard4;

and the amount payable is limited accordingly5.

Where a service charge is payable before the relevant costs are incurred, no greater amount than is reasonable is so payable; and, after the relevant costs have been incurred, any necessary adjustment must be made by repayment, reduction