As a residential or commercial tenant, you need to know three things about the variable service charges your landlord imposes for the upkeep of communal areas such as a gardens, lifts, stairways, parking areas or even a pool or gym: that your service charges relate directly to work done on the property; that they are fair; and that they have been applied accurately to each resident in accordance with their lease.
It is our role at the Haines Watts Service Charge Team to make sure that your landlord is not only applying charges correctly, but is following correct tendering processes while maintaining the property in the best possible condition for you. For example, did you know that, under Section 20 of the Landlord and Tenant Act 1985, landlords are required to consult you if the cost of any work exceeds £250 per leaseholder? And that all service charge monies should be safeguarded in designated trust accounts as per the requirements of Section 42 of the Landlord and Tenant Act 1987? We will also make sure that your service charge bills are issued in a timely fashion, in line with Section 20B of the Landlord and Tenant Act 1985 (i.e. within six months of the year end.)
We report on service charge accounts which reach thousands of leaseholders throughout the UK and have considerable experience in handling the special requirements of Residents Management Companies (RMC) and Right To Manage Companies (RTM). If you have a question, or need some guidance, whether it is about your current service charge, forming an RTM company or considering purchasing the freehold, we will always be there to help.