The following Property guidance note provides comprehensive and up to date legal information covering:
Where a certificate is required to ascertain the service charge then it has been held in Urban Splash Work Ltd v Ridgway and another  UKUT 32 (LC) that there is no general rule that the provision of certified accounts is, or is not, a condition precedent to liability to pay service charges (or just part of the ‘machinery’ for payment)—it will depend on the wording of the particular lease and there is no principle of general application.
A landlord must be careful not to draft for particular circumstances which may render the certification process inoperable once the reversion is transferred. He will then have to sue for recovery of the service charge as he will have no contractual mechanism to recover it. There must be specific provision for an obligation to pay on account as it is unlikely that one will be implied.
In Redrow Homes (Midlands) v Hothi  UKUT 268 (LC), (a residential case) the Upper Tribunal (Lands Chamber) (UT) held that it was an implied term in various leases that the management company must calculate the final
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.