Wragge Lawrence Graham & Co

UK 200 2014 position: 28

Service charge: Friends Life Management Services Ltd v A & A Express Building Ltd

The dispute in Friends Life Management Services Ltd v A & A Express Building Ltd arose as a result of the exercise of a break right in a lease.

It concerned how the service charge provisions in the lease would operate where a break had been exercised. Could a tenant subsequently receive credit for monies it had paid via the service charge for anticipated future major works, where those works did not take place until after the operation of the break?

A lease of business premises was terminated on 24 March 2010 after the tenant exercised a break clause. Under the lease’s terms, the landlord provided services to the building and recouped an appropriate proportion of those costs through a service charge mechanism…

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