Breathing space for landlords: reclaiming service charges from residential long leaseholders

Where landlords of long residential leases carry out ‘qualifying works’ or enter ‘long-term agreements’, statute imposes requirements on them that substantially restrict their ability to recover service charge from their tenants unless certain consultation requirements are complied with or dispensed with by the Leasehold Valuation Tribunal (LVT).

In Daejan the landlord was required to consult with five tenants of a block of flats before carrying out proposed works (valued at £280,000), but failed to fully comply with the consultation requirements. It was a term of the lease that the cost of the work was recoverable as service charge from the tenants.

Daejan asked the LVT for a dispensation, so that it would be able to recover the full amount of £280,000 from the five tenants rather than £250 from each of them which it would otherwise be able to recover. The LVT initially regarded Daejan’s failure as a serious breach of the consultation requirements, which amounted to serious prejudice to the tenants. Accordingly, the LVT refused dispensation and, on appeal, the Upper Tribunal and the Court of Appeal agreed with this refusal…

If you are registered and logged in to the site, click on the link below to read the rest of the Mills & Reeve briefing. If not, please register or sign in with your details below.

 

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Overview

Fountain House
130 Fenchurch Street
London
EC3M 5DJ
UK

Turnover (£m): 79.50
No. of lawyers: 367