Residential flat schemes—insurance, service charge and repair issues
Residential flat schemes—insurance, service charge and repair issues

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

  • Residential flat schemes—insurance, service charge and repair issues
  • Inadequate insurance or service charge provisions
  • Repair ‘gaps’

Inadequate insurance or service charge provisions

A landlord of a flat lease may covenant to insure or provide other services 'subject to and conditional on due payment being made by the Tenant of the insurance rent, interim service charge and the service charge', or words to similar effect (and under certain leases the cost of insuring is an item of service charge expenditure). This form of apparent conditionality was relatively common in leases which were granted in the 1970s and 1980s.

In Yorkbrook Investments, the Court of Appeal held that such wording did not create a condition precedent to the landlord’s obligation to perform; consequently, non-payment by the tenant did not relieve the landlord of the obligation to insure and to provide other services.

The correctness of that decision was doubted shortly after it was made by a majority in the Court of Appeal in Bl

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