Q&As

What limits are there, if any, on the service charge that can be recharged to residential flat owners on a mixed-use estate for privately owned public spaces used by the developer to market new properties on the estate?

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Published on LexisPSL on 26/08/2016

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

  • What limits are there, if any, on the service charge that can be recharged to residential flat owners on a mixed-use estate for privately owned public spaces used by the developer to market new properties on the estate?
  • Service charges
  • Reasonableness of service charges

What limits are there, if any, on the service charge that can be recharged to residential flat owners on a mixed-use estate for privately owned public spaces used by the developer to market new properties on the estate?

Service charges

Under the statutory provisions regulating service charges under residential long leases (sections 18 to 30 of the Landlord and Tenant Act 1985 (LTA 1985)), service charge means an amount payable by a tenant of a dwelling as part of or in addition to the rent which is payable, directly or indirectly, for services, repairs, maintenance, improvements, insurance or the landlord's costs of management, the whole or part of which varies or may vary according to the relevant costs (LTA 1985, s 18(1)).

Reasonableness of service charges

While there is no statutory cap statute limits the amount that may be recovered from tenants of dwellings by way either of service or administration charges. In both cases the landlord may recover no more than is ‘reasonable’, notwithstanding any contrary provision in the lease. The landlord’s ability to forfeit the lease for non-payment is also subject to statutory control.

The LTA 1985, ss 18–25 cover limitations to and reasonableness of service charges. The provisions apply to all dwellings and cover all residential leases, except where LTA 1985, s 26 applies. LTA 1985, s 26 provides for an exception in the case of

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