Q&As

A commercial tenant is looking to exercise a break clause and terminate its lease. However, the landlord has made a large demand for service charge contributions towards the cost of a new lift at the premises. The tenants position is that it is unfair to meet the costs when it will get little, if any, benefit from the work. Although commercial tenants get no statutory protection on service charges is there any case law on this issue?

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Published on LexisPSL on 16/12/2019

The following Property Q&A provides comprehensive and up to date legal information covering:

  • A commercial tenant is looking to exercise a break clause and terminate its lease. However, the landlord has made a large demand for service charge contributions towards the cost of a new lift at the premises. The tenants position is that it is unfair to meet the costs when it will get little, if any, benefit from the work. Although commercial tenants get no statutory protection on service charges is there any case law on this issue?

In the event of a service charge dispute, the starting point for resolving the dispute will be the lease terms. The following PSL content may be useful for research: Commercial service charge disputes—overview and Practice Note: Commercial service charges—what expenses can the landlord recover?

In particular see the section entitled ‘Service charge disputes’ in Commercial service charge disputes—overview

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