Limiting recovery of service charge for residential property
Readers will be aware of the statutory restriction on recovery of service charge from tenants of residential property, if the landlord fails to carry out a consultation with the tenants in relation to ‘qualifying works’ in accordance with section 20 of the Landlord and Tenant Act 1985 (as amended). If that is the case, each tenant’s ‘relevant contribution’ to the costs incurred on carrying out the works is limited by the legislation. If the relevant costs incurred on carrying out the works exceed an amount, which results in the relevant contribution of any one or more tenants being more than £250, then that contribution from each tenant cannot exceed £250.
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