Commercial service charges—the importance of following procedures
Commercial service charges—the importance of following procedures

The following Property practice note provides comprehensive and up to date legal information covering:

  • Commercial service charges—the importance of following procedures
  • The RICS service charge statement

Where a certificate is required to ascertain the service charge then it has been held in Urban Splash Work Ltd v Ridgway and another [2018] 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 [2011] 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 service charge within a reasonable time of the end of the service charge year. That term had been breached in respect of two service charge years. However, the effect was not to invalidate the interim service charge demands for those y

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