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Service charges - failure to consult Print

We have frequently mentioned the importance of the consultation procedures when dealing with residential service charges. A failure to comply with those procedures means that L is restricted to claiming £250 (maximum) from each T.

A recent case involved works costing £275,000, which would have been spread among five Ts. However, the failure to consult meant that each T was liable for a mere £250, leaving L to pay the balance. Note that most of the failures were minor and did not cause significant prejudice to the Ts; moreover, the tribunal could not take into account the disproportionate financial consequences for L when deciding whether or not to make an order for dispensation (ie that the consultation provisions be waived).

Interestingly, the tribunal suggested that Ls ‘would be well advised’ to use the precedents produced by Leasehold Advisory Service (LEASE) at www.lease-advice.org, which are recommended. See Daejan Investments v Benson [2009] UKUT 233 (LC) (access free at www.practicalconveyancing.co.uk).

February 2010
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