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Service charges - new rights Print
From October, Ls will have to supply long lessees with a summary of their rights and obligations (in respect of service and admin charges) when sending out demands for service and admin charges. If L fails to do this, then T does not have to pay the demand.

These provisions will apply to long leases (ie over 21 years) and it is worth noting the transitional provisions that apply when L’s first service charge demand is served prior to 1 October. If the service charge itself is due for payment before October, then any subsequent demand for that money need not contain the summary of rights (even if a subsequent demand is sent out after 1 October). On the other hand, if the service charge is due for payment on or after 1 October, then any further demand for the money served after 1 October will have to contain the summary explanation (but the first demand will not – provided it is served before 1 October).. © Practical Lawyer

June 2007
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